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

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Micron (MU - Free Report) closed at $33.38 in the latest trading session, marking a +1.27% move from the prior day. This change outpaced the S&P 500's 0.41% gain on the day. At the same time, the Dow added 0.39%, and the tech-heavy Nasdaq gained 0.57%.

Coming into today, shares of the chipmaker had lost 14.19% in the past month. In that same time, the Computer and Technology sector lost 2.4%, while the S&P 500 gained 0.1%.

MU will be looking to display strength as it nears its next earnings release, which is expected to be June 25, 2019. The company is expected to report EPS of $0.80, down 74.6% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.72 billion, down 39.42% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.20 per share and revenue of $23.23 billion, which would represent changes of -48.12% and -23.55%, respectively, from the prior year.

Any recent changes to analyst estimates for MU should also be noted by investors. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 2.89% lower. MU is holding a Zacks Rank of #4 (Sell) right now.

Valuation is also important, so investors should note that MU has a Forward P/E ratio of 5.32 right now. This represents a no noticeable deviation compared to its industry's average Forward P/E of 5.32.

The Semiconductor Memory industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 243, which puts it in the bottom 6% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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