Micron (MU) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Micron (MU) closed at $42.66, marking a -0.76% move from the previous day. This move lagged the S&P 500's daily gain of 0.34%. Elsewhere, the Dow gained 0.69%, while the tech-heavy Nasdaq added 0.42%.
Prior to today's trading, shares of the chipmaker had lost 18.34% over the past month. This has lagged the Computer and Technology sector's gain of 4.96% and the S&P 500's gain of 4.3% in that time.
Investors will be hoping for strength from MU as it approaches its next earnings release. In that report, analysts expect MU to post earnings of $0.97 per share. This would mark year-over-year growth of 73.21%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.91 billion, up 21.38% from the year-ago period.
MU's full-year Zacks Consensus Estimates are calling for earnings of $2.73 per share and revenue of $21.24 billion. These results would represent year-over-year changes of -57.01% and -9.27%, respectively.
Any recent changes to analyst estimates for MU should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 0.94% lower. MU is currently a Zacks Rank #3 (Hold).
In terms of valuation, MU is currently trading at a Forward P/E ratio of 15.75. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 15.75.
Meanwhile, MU's PEG ratio is currently 1.54. 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 1.54 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 124, which puts it in the top 49% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much 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.