We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Micron (MU) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
Micron (MU - Free Report) closed the most recent trading day at $86.02, moving +0.22% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.31%. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, added 0.48%.
Prior to today's trading, shares of the chipmaker had gained 13.55% over the past month. This has outpaced the Computer and Technology sector's loss of 0.76% and the S&P 500's loss of 0.04% in that time.
Investors will be hoping for strength from Micron as it approaches its next earnings release, which is expected to be December 20, 2021. The company is expected to report EPS of $2.10, up 169.23% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.66 billion, up 32.62% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.84 per share and revenue of $31.34 billion. These totals would mark changes of +45.87% and +13.13%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Micron. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Micron currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Micron has a Forward P/E ratio of 9.71 right now. Its industry sports an average Forward P/E of 9.71, so we one might conclude that Micron is trading at a no noticeable deviation comparatively.
Also, we should mention that MU has a PEG ratio of 0.43. 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. The Semiconductor Memory industry currently had an average PEG ratio of 0.43 as of yesterday's close.
The Semiconductor Memory industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 118, putting it in the top 47% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Micron (MU) Gains But Lags Market: What You Should Know
Micron (MU - Free Report) closed the most recent trading day at $86.02, moving +0.22% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.31%. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, added 0.48%.
Prior to today's trading, shares of the chipmaker had gained 13.55% over the past month. This has outpaced the Computer and Technology sector's loss of 0.76% and the S&P 500's loss of 0.04% in that time.
Investors will be hoping for strength from Micron as it approaches its next earnings release, which is expected to be December 20, 2021. The company is expected to report EPS of $2.10, up 169.23% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.66 billion, up 32.62% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.84 per share and revenue of $31.34 billion. These totals would mark changes of +45.87% and +13.13%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Micron. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Micron currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Micron has a Forward P/E ratio of 9.71 right now. Its industry sports an average Forward P/E of 9.71, so we one might conclude that Micron is trading at a no noticeable deviation comparatively.
Also, we should mention that MU has a PEG ratio of 0.43. 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. The Semiconductor Memory industry currently had an average PEG ratio of 0.43 as of yesterday's close.
The Semiconductor Memory industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 118, putting it in the top 47% 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.