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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 $33.32, moving +0.09% from the previous trading session. This move lagged the S&P 500's daily gain of 0.21%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, added 0.27%.

Heading into today, shares of the chipmaker had lost 20.55% over the past month, lagging the Computer and Technology sector's loss of 8.68% and the S&P 500's loss of 5.26% in that time.

Investors will be hoping for strength from MU as it approaches its next earnings release, which is expected to be June 25, 2019. In that report, analysts expect MU to post earnings of $0.85 per share. This would mark a year-over-year decline of 73.02%. Our most recent consensus estimate is calling for quarterly revenue of $4.80 billion, down 38.41% from the year-ago period.

MU's full-year Zacks Consensus Estimates are calling for earnings of $6.40 per share and revenue of $23.51 billion. These results would represent year-over-year changes of -46.44% and -22.65%, respectively.

Investors might also notice recent changes to analyst estimates for MU. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MU is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, MU is currently trading at a Forward P/E ratio of 5.2. This represents a no noticeable deviation compared to its industry's average Forward P/E of 5.2.

The Semiconductor Memory industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 107, putting it in the top 42% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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