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Micron (MU) Dips More Than Broader Markets: What You Should Know

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Micron (MU - Free Report) closed the most recent trading day at $60.92, moving -1.12% from the previous trading session. This change lagged the S&P 500's daily loss of 0.16%. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq added 3.1%.

Heading into today, shares of the chipmaker had lost 2.21% over the past month, lagging the Computer and Technology sector's gain of 3.26% and the S&P 500's gain of 0.6% in that time.

Wall Street will be looking for positivity from Micron as it approaches its next earnings report date. In that report, analysts expect Micron to post earnings of -$1.57 per share. This would mark a year-over-year decline of 160.62%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.69 billion, down 57.26% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$4.71 per share and revenue of $15.45 billion. These totals would mark changes of -156.41% and -49.78%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Micron. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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 has moved 6.64% lower. Micron currently has a Zacks Rank of #3 (Hold).

The Semiconductor Memory industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 122, putting it in the top 49% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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