Micron (MU) closed at $70.78 in the latest trading session, marking a -0.21% move from the prior day. This move was narrower than the S&P 500’s daily loss of 0.71%.
Coming into today, shares of the chipmaker had lost 4.89% in the past month. In that same time, the Computer and Technology sector gained 4.04%, while the S&P 500 gained 3.63%.
Investors will be hoping for strength from MU as it approaches its next earnings release. The company is expected to report EPS of $2.31, up 113.89% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.19 billion, up 35.28% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.95 per share and revenue of $27.5 billion, which would represent changes of +110.25% and +28.3%, respectively, from the prior year.
Any recent changes to analyst estimates for MU should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
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. Within the past 30 days, our consensus EPS projection remained stagnant. MU is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that MU has a Forward P/E ratio of 11.92 right now. This represents a no noticeable deviation compared to its industry’s average Forward P/E of 11.92.
Investors should also note that MU has a PEG ratio of 0.93 right now. 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 0.93 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 121, putting it in the top 48% 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.
Zacks’ Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create “the world’s first trillionaires.” Zacks’ urgent special report reveals 3 AI picks investors need to know about today.
See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
