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Micron (MU) Gains But Lags Market: What You Should Know

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Micron (MU - Free Report) closed the most recent trading day at $39.03, moving +0.98% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.47%. At the same time, the Dow added 0.79%, and the tech-heavy Nasdaq gained 2.02%.

Heading into today, shares of the chipmaker had lost 1.85% over the past month, lagging the Computer and Technology sector's gain of 2.44% and the S&P 500's gain of 1.5% in that time.

Investors will be hoping for strength from MU as it approaches its next earnings release, which is expected to be March 20, 2019. In that report, analysts expect MU to post earnings of $1.75 per share. This would mark a year-over-year decline of 37.94%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.97 billion, down 18.84% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.67 per share and revenue of $25.52 billion, which would represent changes of -35.82% and -16.03%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for MU. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.55% lower. MU is holding a Zacks Rank of #4 (Sell) right now.

In terms of valuation, MU is currently trading at a Forward P/E ratio of 5.04. For comparison, its industry has an average Forward P/E of 5.04, which means MU is trading at a no noticeable deviation to the group.

Investors should also note that MU has a PEG ratio of 0.79 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor Memory industry currently had an average PEG ratio of 0.79 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 247, which puts it in the bottom 4% 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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