Over the last year there has been a huge jump in demand for chips and I don’t mean Pringles. The “Internet of Things” is connecting everyday items like coffee makers and crock pots to your home WiFi network. This new technology is introducing a large source of demand for an already very sought after technological device, the memory chip. One of the most attractive stocks out there in this space is today’s Bull of the Day, Micron (MU Quick QuoteMU - Free Report) .

Micron Technology, Inc. provides semiconductor systems worldwide. The company operates through four segments: Compute and Networking Business Unit, Storage Business Unit, Mobile Business Unit, and Embedded Business Unit. It offers DDR3 and DDR4 DRAM products for computers, servers, networking devices, communications equipment, consumer electronics, automotive, and industrial applications; mobile low-power DRAM products for smartphones, tablets, automotive, laptop computers, and other mobile consumer device applications; DDR2 and DDR DRAM, GDDR5 and GDDR5X DRAM, SDRAM, and RLDRAM products for networking devices, servers, consumer electronics, communications equipment, computer peripherals, automotive and industrial applications, and computer memory upgrades; and hybrid memory cube semiconductor memory devices for use in networking and computing applications.

The company is a Zacks Rank #1 (Strong Buy) in an industry that ranks as the top industry of all the 265 we rank at Zacks. A big reason for the rank is three analysts has increased their earnings estimates on Micron for the current quarter, next quarter, and current year over the last 60 days. The bullish sentiment has catapulted Micron’s current year EPS estimate from $1.83 to $3.67. Next year’s EPS consensus number has gone from $2.21 to $4.95 over the same period. That represents 35% year over year growth next year. That number pales in comparison to this year’s growth where EPS went from 6 cents last year to the whopping $3.67 number analysts are looking for now.

Micron shares have fared very well over the last year, rallying from under $10 last May to over $28 today. Since the last earnings report the stock has come down in a price a little, testing the 50-day moving average before finding a bid. Should the recent positivity continue, I think Micron could breakout above $30 ahead of its next report due out in late June. The Chaikin Money Flow indicator just crossed over the zero line as well, giving a short-term buy signal.

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