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Micron (MU) Gains But Lags Market: What You Should Know
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Micron (MU - Free Report) closed at $80.52 in the latest trading session, marking a +1.07% move from the prior day. The stock lagged the S&P 500's daily gain of 1.24%. Meanwhile, the Dow gained 1.23%, and the Nasdaq, a tech-heavy index, added 0.15%.
Prior to today's trading, shares of the chipmaker had lost 17.06% over the past month. This has lagged the Computer and Technology sector's loss of 5.9% and the S&P 500's loss of 2.45% in that time.
Micron will be looking to display strength as it nears its next earnings release, which is expected to be March 29, 2022. The company is expected to report EPS of $1.95, up 98.98% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.51 billion, up 20.44% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.95 per share and revenue of $32.03 billion. These totals would mark changes of +47.69% and +15.63%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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, 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 is currently a Zacks Rank #2 (Buy).
In terms of valuation, Micron is currently trading at a Forward P/E ratio of 8.9. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 8.9.
We can also see that MU currently has a PEG ratio of 0.37. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductor Memory industry currently had an average PEG ratio of 0.37 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 11, which puts it in the top 5% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
View the Zacks #1 Rank List
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Micron (MU) Gains But Lags Market: What You Should Know
Micron (MU - Free Report) closed at $80.52 in the latest trading session, marking a +1.07% move from the prior day. The stock lagged the S&P 500's daily gain of 1.24%. Meanwhile, the Dow gained 1.23%, and the Nasdaq, a tech-heavy index, added 0.15%.
Prior to today's trading, shares of the chipmaker had lost 17.06% over the past month. This has lagged the Computer and Technology sector's loss of 5.9% and the S&P 500's loss of 2.45% in that time.
Micron will be looking to display strength as it nears its next earnings release, which is expected to be March 29, 2022. The company is expected to report EPS of $1.95, up 98.98% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.51 billion, up 20.44% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.95 per share and revenue of $32.03 billion. These totals would mark changes of +47.69% and +15.63%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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, 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 is currently a Zacks Rank #2 (Buy).
In terms of valuation, Micron is currently trading at a Forward P/E ratio of 8.9. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 8.9.
We can also see that MU currently has a PEG ratio of 0.37. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductor Memory industry currently had an average PEG ratio of 0.37 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 11, which puts it in the top 5% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.