Here's Why Micron (MU) Gained But Lagged the Market Today

Micron (MU) closed the latest trading day at $81.83, indicating a +0.37% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 0.96%. Elsewhere, the Dow gained 0.4%, while the tech-heavy Nasdaq added 1.3%.

Prior to today's trading, shares of the chipmaker had lost 3.64% over the past month. This has lagged the Computer and Technology sector's gain of 6.92% and the S&P 500's gain of 3.69% in that time.

The investment community will be closely monitoring the performance of Micron in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be -$0.28, reflecting an 85.34% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $5.32 billion, indicating a 44.1% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of -$0.43 per share and a revenue of $22.18 billion, indicating changes of +90.34% and +42.76%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for Micron. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.13% increase. As of now, Micron holds a Zacks Rank of #2 (Buy).

The Semiconductor Memory industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 1, placing it within the top 1% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow MU in the coming trading sessions, be sure to utilize Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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