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Micron Technology, Inc. (MU) Hit a 52 Week High, Can the Run Continue?
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Shares of Micron (MU - Free Report) have been strong performers lately, with the stock up 7.7% over the past month. The stock hit a new 52-week high of $264.75 in the previous session. Micron has gained 213.3% since the start of the year compared to the 29.7% move for the Zacks Computer and Technology sector and the 87.3% return for the Zacks Computer - Integrated Systems industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on September 23, 2025, Micron reported EPS of $3.03 versus consensus estimate of $2.86 while it beat the consensus revenue estimate by 0.47%.
For the current fiscal year, Micron is expected to post earnings of $17.69 per share on $55.16 in revenues. This represents a 113.39% change in EPS on a 47.58% change in revenues. For the next fiscal year, the company is expected to earn $22.01 per share on $64.53 in revenues. This represents a year-over-year change of 24.41% and 16.99%, respectively.
Valuation Metrics
Though Micron has recently hit a 52-week high, what is next for Micron? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Micron has a Value Score of C. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 14.9X current fiscal year EPS estimates, which is not in-line with the peer industry average of 26.8X. On a trailing cash flow basis, the stock currently trades at 17.4X versus its peer group's average of 24X. Additionally, the stock has a PEG ratio of 0.42. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Micron currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Micron passes the test. Thus, it seems as though Micron shares could still be poised for more gains ahead.
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Micron Technology, Inc. (MU) Hit a 52 Week High, Can the Run Continue?
Shares of Micron (MU - Free Report) have been strong performers lately, with the stock up 7.7% over the past month. The stock hit a new 52-week high of $264.75 in the previous session. Micron has gained 213.3% since the start of the year compared to the 29.7% move for the Zacks Computer and Technology sector and the 87.3% return for the Zacks Computer - Integrated Systems industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on September 23, 2025, Micron reported EPS of $3.03 versus consensus estimate of $2.86 while it beat the consensus revenue estimate by 0.47%.
For the current fiscal year, Micron is expected to post earnings of $17.69 per share on $55.16 in revenues. This represents a 113.39% change in EPS on a 47.58% change in revenues. For the next fiscal year, the company is expected to earn $22.01 per share on $64.53 in revenues. This represents a year-over-year change of 24.41% and 16.99%, respectively.
Valuation Metrics
Though Micron has recently hit a 52-week high, what is next for Micron? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Micron has a Value Score of C. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 14.9X current fiscal year EPS estimates, which is not in-line with the peer industry average of 26.8X. On a trailing cash flow basis, the stock currently trades at 17.4X versus its peer group's average of 24X. Additionally, the stock has a PEG ratio of 0.42. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Micron currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Micron passes the test. Thus, it seems as though Micron shares could still be poised for more gains ahead.