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Here's Why Micron (MU) Fell More Than Broader Market
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In the latest trading session, Micron (MU - Free Report) closed at $934.27, marking a -4.98% move from the previous day. This move lagged the S&P 500's daily loss of 0.31%. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq decreased by 1.38%.
The chipmaker's shares have seen a decrease of 7.69% over the last month, not keeping up with the Computer and Technology sector's loss of 3.14% and the S&P 500's gain of 0.87%.
The investment community will be paying close attention to the earnings performance of Micron in its upcoming release. The company is predicted to post an EPS of $38.2, indicating a 699.16% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $62.04 billion, reflecting a 354.75% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $177.73 per share and a revenue of $277.58 billion, signifying shifts of +135.34% and +108.41%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Micron. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 11.32% higher. Micron is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, Micron is currently trading at a Forward P/E ratio of 5.53. This indicates a discount in contrast to its industry's Forward P/E of 19.35.
One should further note that MU currently holds a PEG ratio of 0.17. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Integrated Systems industry had an average PEG ratio of 1.42 as trading concluded yesterday.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 47, finds itself in the top 20% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
View the Zacks #1 Rank List
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Here's Why Micron (MU) Fell More Than Broader Market
In the latest trading session, Micron (MU - Free Report) closed at $934.27, marking a -4.98% move from the previous day. This move lagged the S&P 500's daily loss of 0.31%. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq decreased by 1.38%.
The chipmaker's shares have seen a decrease of 7.69% over the last month, not keeping up with the Computer and Technology sector's loss of 3.14% and the S&P 500's gain of 0.87%.
The investment community will be paying close attention to the earnings performance of Micron in its upcoming release. The company is predicted to post an EPS of $38.2, indicating a 699.16% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $62.04 billion, reflecting a 354.75% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $177.73 per share and a revenue of $277.58 billion, signifying shifts of +135.34% and +108.41%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Micron. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 11.32% higher. Micron is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, Micron is currently trading at a Forward P/E ratio of 5.53. This indicates a discount in contrast to its industry's Forward P/E of 19.35.
One should further note that MU currently holds a PEG ratio of 0.17. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Integrated Systems industry had an average PEG ratio of 1.42 as trading concluded yesterday.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 47, finds itself in the top 20% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.