Micron (MU) closed at $43.07 in the latest trading session, marking a -1.19% move from the prior day. This move lagged the S&P 500's daily loss of 0.04%. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq lost 0.67%.
Prior to today's trading, shares of the chipmaker had lost 2.4% over the past month. This has lagged the Computer and Technology sector's loss of 1.53% and the S&P 500's gain of 0.02% in that time.
MU will be looking to display strength as it nears its next earnings release, which is expected to be December 18, 2018. In that report, analysts expect MU to post earnings of $2.92 per share. This would mark year-over-year growth of 19.18%. Our most recent consensus estimate is calling for quarterly revenue of $8.08 billion, up 18.72% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.47 per share and revenue of $31.17 billion, which would represent changes of -12.38% and +2.55%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for MU. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 past month, the Zacks Consensus EPS estimate has moved 4.41% lower. MU is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, MU currently has a Forward P/E ratio of 4.16. For comparison, its industry has an average Forward P/E of 4.16, which means MU is trading at a no noticeable deviation to the group.
Investors should also note that MU has a PEG ratio of 0.66 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Semiconductor Memory was holding an average PEG ratio of 0.66 at yesterday's closing price.
The Semiconductor Memory industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 40% of all 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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