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

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Micron (MU - Free Report) closed at $38.03 in the latest trading session, marking a +0.48% move from the prior day. This move outpaced the S&P 500's daily loss of 0.76%. Meanwhile, the Dow lost 0.82%, and the Nasdaq, a tech-heavy index, lost 0.9%.

Heading into today, shares of the chipmaker had lost 12.41% over the past month, lagging the Computer and Technology sector's loss of 4.92% and the S&P 500's loss of 1.41% in that time.

Wall Street will be looking for positivity from MU as it approaches its next earnings report date. This is expected to be December 18, 2018. In that report, analysts expect MU to post earnings of $2.90 per share. This would mark year-over-year growth of 18.37%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.03 billion, up 18.04% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.20 per share and revenue of $30.88 billion. These totals would mark changes of -14.64% and +1.62%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for MU. Recent revisions tend to reflect the latest near-term business trends. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 3.26% lower. MU currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that MU has a Forward P/E ratio of 3.71 right now. This represents a no noticeable deviation compared to its industry's average Forward P/E of 3.71.

Investors should also note that MU has a PEG ratio of 0.58 right now. 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. Semiconductor Memory stocks are, on average, holding a PEG ratio of 0.58 based on yesterday's closing prices.

The Semiconductor Memory industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 115, putting it in the top 45% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


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