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

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In the latest trading session, Micron (MU - Free Report) closed at $64.22, marking a -1.7% move from the previous day. This move lagged the S&P 500's daily loss of 0.76%. Elsewhere, the Dow lost 0.52%, while the tech-heavy Nasdaq lost 1.15%.

Coming into today, shares of the chipmaker had gained 0.6% in the past month. In that same time, the Computer and Technology sector lost 3.9%, while the S&P 500 lost 1.4%.

Wall Street will be looking for positivity from Micron as it approaches its next earnings report date. On that day, Micron is projected to report earnings of -$1.19 per share, which would represent a year-over-year decline of 182.07%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.91 billion, down 41.2% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$4.56 per share and revenue of $15.44 billion, which would represent changes of -154.61% and -49.81%, respectively, from the prior year.

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.

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 is currently sporting a Zacks Rank of #3 (Hold).

The Semiconductor Memory industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 43% 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.

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


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