Back to top

Image: Bigstock

Micron (MU) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

In the latest trading session, Micron (MU - Free Report) closed at $83.86, marking a +1% move from the previous day. This change outpaced the S&P 500's 0.46% loss on the day. At the same time, the Dow lost 0.7%, and the tech-heavy Nasdaq lost 0.68%.

Coming into today, shares of the chipmaker had gained 22.99% in the past month. In that same time, the Computer and Technology sector gained 4.67%, while the S&P 500 gained 4.05%.

Investors will be hoping for strength from Micron as it approaches its next earnings release, which is expected to be December 20, 2021. On that day, Micron is projected to report earnings of $2.10 per share, which would represent year-over-year growth of 169.23%. Meanwhile, our latest consensus estimate is calling for revenue of $7.66 billion, up 32.62% from the prior-year quarter.

MU's full-year Zacks Consensus Estimates are calling for earnings of $8.84 per share and revenue of $31.34 billion. These results would represent year-over-year changes of +45.87% and +13.13%, respectively.

It is also important to note the recent changes to analyst estimates for Micron. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Micron is currently sporting a Zacks Rank of #5 (Strong Sell).

In terms of valuation, Micron is currently trading at a Forward P/E ratio of 9.39. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 9.39.

It is also worth noting that MU currently has a PEG ratio of 0.42. 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. Semiconductor Memory stocks are, on average, holding a PEG ratio of 0.42 based on yesterday's closing prices.

The Semiconductor Memory industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 253, which puts it in the bottom 1% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Micron Technology, Inc. (MU) - free report >>

Published in