Micron (MU) Stock Sinks As Market Gains: What You Should Know
Micron (MU) closed the most recent trading day at $33.94, moving -1.02% from the previous trading session. This move lagged the S&P 500's daily gain of 0.3%. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, added 0.42%.
Prior to today's trading, shares of the chipmaker had lost 3.79% over the past month. This has lagged the Computer and Technology sector's gain of 0.55% and the S&P 500's gain of 2.2% in that time.
Wall Street will be looking for positivity from MU as it approaches its next earnings report date. This is expected to be June 25, 2019. In that report, analysts expect MU to post earnings of $0.80 per share. This would mark a year-over-year decline of 74.6%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.72 billion, down 39.42% from the year-ago period.
MU's full-year Zacks Consensus Estimates are calling for earnings of $6.16 per share and revenue of $23.23 billion. These results would represent year-over-year changes of -48.45% and -23.55%, respectively.
Investors should also note any recent changes to analyst estimates for MU. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.75% lower. MU is currently a Zacks Rank #5 (Strong Sell).
Digging into valuation, MU currently has a Forward P/E ratio of 5.57. For comparison, its industry has an average Forward P/E of 5.57, which means MU is trading at a no noticeable deviation to the group.
The Semiconductor Memory industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 256, putting it in the bottom 1% 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.
Be sure to follow all of these stock-moving metrics, and many more, on 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.