Micron (MU) closed the most recent trading day at $45.60, moving -1.17% from the previous trading session. This change lagged the S&P 500’s 0.02% loss on the day. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, lost 0.21%.
Coming into today, shares of the chipmaker had lost 7.9% in the past month. In that same time, the Computer and Technology sector gained 6.62%, while the S&P 500 gained 7.01%.
MU will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1, up 78.57% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6 billion, up 23.27% from the prior-year quarter.
MU’s full-year Zacks Consensus Estimates are calling for earnings of $2.76 per share and revenue of $21.31 billion. These results would represent year-over-year changes of -56.54% and -8.97%, respectively.
Investors should also note any recent changes to analyst estimates for MU. These recent revisions tend to reflect the evolving nature of short-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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MU currently has a Zacks Rank of #2 (Buy).
Investors should also note MU’s current valuation metrics, including its Forward P/E ratio of 16.7. Its industry sports an average Forward P/E of 16.7, 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 1.63. 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 was holding an average PEG ratio of 1.63 at yesterday’s closing price.
The Semiconductor Memory industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 4, putting it in the top 2% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.