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Micron (MU) Stock Sinks As Market Gains: What You Should Know

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Micron (MU - Free Report) closed at $45.15 in the latest trading session, marking a -0.19% move from the prior day. The stock lagged the S&P 500's daily gain of 0.36%. Meanwhile, the Dow gained 0.73%, and the Nasdaq, a tech-heavy index, lost 0.11%.

Heading into today, shares of the chipmaker had lost 14.27% over the past month, lagging the Computer and Technology sector's loss of 0.17% and the S&P 500's gain of 0.73% in that time.

Investors will be hoping for strength from MU as it approaches its next earnings release, which is expected to be December 18, 2018. On that day, MU is projected to report earnings of $2.92 per share, which would represent year-over-year growth of 19.18%. Meanwhile, our latest consensus estimate is calling for revenue of $8.08 billion, up 18.72% from the prior-year quarter.

MU's full-year Zacks Consensus Estimates are calling for earnings of $10.47 per share and revenue of $31.17 billion. These results would represent year-over-year changes of -12.38% and +2.55%, respectively.

Investors should also note any recent changes to analyst estimates for MU. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. The Zacks Consensus EPS estimate has moved 4.41% lower within the past month. MU currently has a Zacks Rank of #3 (Hold).

Investors should also note MU's current valuation metrics, including its Forward P/E ratio of 4.32. Its industry sports an average Forward P/E of 4.32, so we one might conclude that MU is trading at a no noticeable deviation comparatively.

We can also see that MU currently has a PEG ratio of 0.68. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductor Memory industry currently had an average PEG ratio of 0.68 as of yesterday's close.

The Semiconductor Memory industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 111, which puts it in the top 44% 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.

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


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