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Micron (MU) Dips More Than Broader Markets: What You Should Know

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Micron (MU - Free Report) closed at $36.12 in the latest trading session, marking a -1.93% move from the prior day. This move lagged the S&P 500's daily loss of 1.82%. Meanwhile, the Dow lost 2.21%, and the Nasdaq, a tech-heavy index, lost 1.7%.

Prior to today's trading, shares of the chipmaker had lost 7.37% over the past month. This has lagged the Computer and Technology sector's loss of 5.96% and the S&P 500's loss of 2.57% in that time.

MU will be looking to display strength as it nears its next earnings release, which is expected to be December 18, 2018. The company is expected to report EPS of $2.90, up 18.37% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.03 billion, up 18.04% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.20 per share and revenue of $30.88 billion. These totals would mark changes of -14.64% and +1.62%, respectively, from last year.

Any recent changes to analyst estimates for MU should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 3.26% lower within the past month. MU is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, MU is holding a Forward P/E ratio of 3.61. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 3.61.

Meanwhile, MU's PEG ratio is currently 0.57. 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. MU's industry had an average PEG ratio of 0.57 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 113, which puts it in the top 44% 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.

To follow MU in the coming trading sessions, be sure to utilize Zacks.com.


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