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Can Micron Technology (MU) Stock Break Into a New Range?
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Thanks to increased demand from new consumer and commercial trends like the Internet of Things, the semiconductor industry has been hot so far this year. One of the more popular stocks within this broad category is Micron Technology (MU - Free Report) , a growing leader with a Zacks Rank #1 (Strong Buy).
Not only is Micron a #1 ranked stock, but it’s also displaying impressive fundamentals. Share prices have soared more than 30% year-to-date, and the stock is hovering near its 52-week high of $29.87 per share.
So what makes Micron stick out from its industry peers, and can it break into a new range soon? Well, today we’re going to answer those questions by taking a look at the company’s latest earnings-related trends, as well as its current value and momentum-based metrics.
Impressive Earnings Estimates
The big reason why shares of Micron have moved from under $10 last May to over $28 today is the company’s shocking earnings growth. A combination of higher sales and improved efficiency have helped the company move from posting earnings of six cents last year to the $3.67 figure that analysts are expecting now.
What’s more, Micron has seen some impressive estimate revision activity. Analysts have posted three positive revisions for the company’s current-quarter and full-year earnings within the past 60 days, and there has also been two positive revisions for its next-year earnings within that same timeframe.
Based on current estimates, we expect Micron to record EPS growth of more than 6000% (you read that right!) this fiscal year. These results will be partially driven by the revenue growth of 58% that our consensus estimate currently calls for. This impressive growth is expected to continue into next year, with our current consensus estimates calling for earnings and revenue growth of 35% and 10%, respectively.
Style Scores Look Great
This impressive earnings data has helped Micron earn its strong Zacks Rank, and this ranking is underscored by the stock’s solid Style Scores. Notably, Micron currently sports an “A” grade for Value and a “B” grade for Growth, lifting its overall VGM score to “A.”
Value-minded investors will note that Micron’s “A” for Value is bolstered by its P/E ratio 7.88, as well as its P/B ration of 2.12 and its P/S ratio of 1.64. We’ve already noted the company’s shocking growth metrics, which are the key behind its “B” in that category.
Breaking Into a New Range
Micron reports its latest earnings results in late June 29, and investors will need to keep an eye on analyst sentiment ahead of the report. After closing at $28.93 per share on Friday, the stock is right at its 52-week high of $29.87. If analyst sentiment remains bullish before the company reports next month, Micron could easily break into a new range before its earnings announcement. If not, another quarter that meets or exceeds expectations could bring Micron to the next level.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
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Can Micron Technology (MU) Stock Break Into a New Range?
Thanks to increased demand from new consumer and commercial trends like the Internet of Things, the semiconductor industry has been hot so far this year. One of the more popular stocks within this broad category is Micron Technology (MU - Free Report) , a growing leader with a Zacks Rank #1 (Strong Buy).
Not only is Micron a #1 ranked stock, but it’s also displaying impressive fundamentals. Share prices have soared more than 30% year-to-date, and the stock is hovering near its 52-week high of $29.87 per share.
So what makes Micron stick out from its industry peers, and can it break into a new range soon? Well, today we’re going to answer those questions by taking a look at the company’s latest earnings-related trends, as well as its current value and momentum-based metrics.
Impressive Earnings Estimates
The big reason why shares of Micron have moved from under $10 last May to over $28 today is the company’s shocking earnings growth. A combination of higher sales and improved efficiency have helped the company move from posting earnings of six cents last year to the $3.67 figure that analysts are expecting now.
What’s more, Micron has seen some impressive estimate revision activity. Analysts have posted three positive revisions for the company’s current-quarter and full-year earnings within the past 60 days, and there has also been two positive revisions for its next-year earnings within that same timeframe.
Based on current estimates, we expect Micron to record EPS growth of more than 6000% (you read that right!) this fiscal year. These results will be partially driven by the revenue growth of 58% that our consensus estimate currently calls for. This impressive growth is expected to continue into next year, with our current consensus estimates calling for earnings and revenue growth of 35% and 10%, respectively.
Style Scores Look Great
This impressive earnings data has helped Micron earn its strong Zacks Rank, and this ranking is underscored by the stock’s solid Style Scores. Notably, Micron currently sports an “A” grade for Value and a “B” grade for Growth, lifting its overall VGM score to “A.”
Value-minded investors will note that Micron’s “A” for Value is bolstered by its P/E ratio 7.88, as well as its P/B ration of 2.12 and its P/S ratio of 1.64. We’ve already noted the company’s shocking growth metrics, which are the key behind its “B” in that category.
Breaking Into a New Range
Micron reports its latest earnings results in late June 29, and investors will need to keep an eye on analyst sentiment ahead of the report. After closing at $28.93 per share on Friday, the stock is right at its 52-week high of $29.87. If analyst sentiment remains bullish before the company reports next month, Micron could easily break into a new range before its earnings announcement. If not, another quarter that meets or exceeds expectations could bring Micron to the next level.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>