Micron (MU - Free Report) closed the most recent trading day at $46.48, moving +0.32% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.81%. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq lost 1.27%.
Prior to today's trading, shares of the chipmaker had lost 4.87% over the past month. This has lagged the Computer and Technology sector's loss of 1.87% and the S&P 500's gain of 5.06% in that time.
Investors will be hoping for strength from MU as it approaches its next earnings release, which is expected to be September 29, 2020. On that day, MU is projected to report earnings of $0.97 per share, which would represent year-over-year growth of 73.21%. Meanwhile, our latest consensus estimate is calling for revenue of $5.91 billion, up 21.38% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for MU. These revisions help to show the ever-changing nature of 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 8.07% lower. MU is currently a Zacks Rank #5 (Strong Sell).
In terms of valuation, MU is currently trading at a Forward P/E ratio of 12.9. For comparison, its industry has an average Forward P/E of 12.9, which means MU is trading at a no noticeable deviation to the group.
Also, we should mention that MU has a PEG ratio of 1.26. 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. The Semiconductor Memory was holding an average PEG ratio of 1.26 at yesterday's closing price.
The Semiconductor Memory industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 251, which puts it in the bottom 2% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.