In the latest trading session, Micron (MU) closed at $97.86, down -1.06% from the previous day. The stock lagged the S&P 500 which saw a gain of 0.16% for the day. At the same time, the Dow gained 0.02% and the tech-heavy Nasdaq gained 0.16%.
The chipmaker’s shares fell 8.29% month-on-month, lagging the Computer and Technology sector’s 2.69% gain and the S&P 500’s 2.97% gain.
Analysts and investors will be closely monitoring Micron’s performance on its upcoming earnings release. The company is expected to report earnings per share of $1.08, representing growth of 200.93% from the corresponding quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $7.65 billion, up 90.85% from the year-ago quarter.
For the full year, analysts expect earnings of $1.16 per share and revenue of $24.93 billion, according to Zacks Consensus Estimates. These amounts would represent a year-over-year change of +126.07% and +60.42%, respectively.
Investors should also pay attention to any recent changes in analyst estimates for Micron. These recent changes typically reflect the evolving nature of near-term business trends. Therefore, positive estimate changes convey analysts’ confidence in the company’s business performance and earnings potential.
Based on our research, we believe these estimate changes are directly related to stock moves in nearby teams. To capitalize on this, we have developed the Zacks Rank, a unique model that takes these estimate changes into account and provides a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has a remarkable, outside-audited track record of success. #1 stocks have delivered an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus Estimate for earnings per share remained stagnant. Micron currently carries a Zacks Rank of #3 (Hold).
In terms of valuation, Micron currently has a P/E ratio of 85.37. This does not represent a significant deviation from the industry average P/E ratio of 85.37.
The Semiconductor Memory industry is part of the Computer and Technology sector. The current Zacks Industry Rank of 103 puts this industry in the top 41% of all industries which include over 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% of industries outperform the bottom half by a factor of 2 to 1.
Don’t forget to rely on Zacks.com in the following trading sessions to keep track of all these and other metrics that affect the stock.
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Micron Technology, Inc. (MU): Free Stock Analysis Report
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