Micron (MU) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Micron (MU) closed at $44.62, marking a -0.76% move from the previous day. This change lagged the S&P 500's daily gain of 0.17%. Elsewhere, the Dow gained 0.57%, while the tech-heavy Nasdaq lost 0.34%.
Prior to today's trading, shares of the chipmaker had lost 10.78% over the past month. This has lagged the Computer and Technology sector's gain of 13.74% and the S&P 500's gain of 8.34% in that time.
MU will be looking to display strength as it nears its next earnings release. On that day, MU is projected to report earnings of $0.97 per share, which would represent year-over-year growth of 73.21%. Our most recent consensus estimate is calling for quarterly revenue 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.
Investors might also notice recent changes to analyst estimates for MU. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating 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).
Digging into valuation, MU currently has a Forward P/E ratio of 16.48. This represents a no noticeable deviation compared to its industry's average Forward P/E of 16.48.
It is also worth noting that MU currently has a PEG ratio of 1.61. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MU's industry had an average PEG ratio of 1.61 as of yesterday's close.
The Semiconductor Memory industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 120, which puts it in the top 48% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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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.