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

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Micron (MU - Free Report) closed the most recent trading day at $68.90, moving -0.72% from the previous trading session. This move lagged the S&P 500's daily gain of 0.02%. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, lost 0.16%.

Coming into today, shares of the chipmaker had lost 2.14% in the past month. In that same time, the Computer and Technology sector lost 14.21%, while the S&P 500 lost 12.5%.

Micron will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.45, up 30.32% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.69 billion, up 17.1% from the prior-year quarter.

MU's full-year Zacks Consensus Estimates are calling for earnings of $9.54 per share and revenue of $33.55 billion. These results would represent year-over-year changes of +57.43% and +21.1%, respectively.

Any recent changes to analyst estimates for Micron should also be noted by investors. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Micron currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Micron is holding a Forward P/E ratio of 7.27. Its industry sports an average Forward P/E of 7.27, so we one might conclude that Micron is trading at a no noticeable deviation comparatively.

Meanwhile, MU's PEG ratio is currently 0.23. 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. MU's industry had an average PEG ratio of 0.23 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 101, which puts it in the top 41% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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