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Micron (MU) Exceeds Market Returns: Some Facts to Consider

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The most recent trading session ended with Micron (MU - Free Report) standing at $114.14, reflecting a +2.88% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.55% gain on the day. Meanwhile, the Dow experienced a rise of 0.25%, and the technology-dominated Nasdaq saw an increase of 0.63%.

Prior to today's trading, shares of the chipmaker had gained 20.22% over the past month. This has outpaced the Computer and Technology sector's gain of 11.3% and the S&P 500's gain of 6.29% in that time.

Market participants will be closely following the financial results of Micron in its upcoming release. The company plans to announce its earnings on June 25, 2025. The company's earnings per share (EPS) are projected to be $1.57, reflecting a 153.23% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $8.81 billion, up 29.33% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.93 per share and a revenue of $35.49 billion, representing changes of +433.08% and +41.34%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Micron. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Micron is currently sporting a Zacks Rank of #3 (Hold).

In the context of valuation, Micron is at present trading with a Forward P/E ratio of 16.02. This represents a discount compared to its industry's average Forward P/E of 18.04.

The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 84, putting it in the top 35% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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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