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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 $80.85 in the latest trading session, marking a -5.97% move from the prior day. This move lagged the S&P 500's daily loss of 1.04%.

Prior to today's trading, shares of the chipmaker had lost 9.77% over the past month. This has lagged the Computer and Technology sector's gain of 3.67% and the S&P 500's gain of 3.83% in that time.

The company is expected to report EPS of $1.60, up 95.12% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.09 billion, up 30.32% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.48 per share and revenue of $26.76 billion, which would represent changes of +93.64% and +24.84%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for MU. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection remained stagnant. MU is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, MU currently has a Forward P/E ratio of 15.69. For comparison, its industry has an average Forward P/E of 15.69, which means MU is trading at a no noticeable deviation to the group.

Investors should also note that MU has a PEG ratio of 1 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MU's industry had an average PEG ratio of 1 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 127, which puts it in the top 50% 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.


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