UK markets closed

Micron (MU) Gains But Lags Market: What You Should Know

Zacks Equity Research

Micron (MU) closed at $59.20 in the latest trading session, marking a +0.05% move from the prior day. The stock lagged the S&P 500's daily gain of 0.11%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, added 0.2%.

Heading into today, shares of the chipmaker had gained 6.77% over the past month, outpacing the Computer and Technology sector's gain of 6.56% and the S&P 500's gain of 3.25% in that time.

Wall Street will be looking for positivity from MU as it approaches its next earnings report date. On that day, MU is projected to report earnings of $0.37 per share, which would represent a year-over-year decline of 78.36%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.66 billion, down 20.06% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.39 per share and revenue of $20.30 billion. These totals would mark changes of -62.36% and -13.28%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for MU. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. MU is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, MU currently has a Forward P/E ratio of 24.79. Its industry sports an average Forward P/E of 24.79, so we one might conclude that MU is trading at a no noticeable deviation comparatively.

The Semiconductor Memory industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 116, putting it in the top 46% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Micron Technology, Inc. (MU) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.