In the latest close session, Micron (MU) was up +2.84% at $111.87. The stock outpaced the S&P 500's daily loss of 0.08%. At the same time, the Dow lost 0.51%, and the tech-heavy Nasdaq gained 0.35%.
Heading into today, shares of the chipmaker had lost 11.01% over the past month, lagging the Computer and Technology sector's gain of 3.95% and the S&P 500's gain of 1.21%.
The investment community will be closely monitoring the performance of Micron in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $2.51, reflecting a 112.71% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $10.73 billion, indicating a 38.45% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.77 per share and a revenue of $36.61 billion, representing changes of +497.69% and +45.8%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Micron. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate has moved 0.2% lower within the past month. Right now, Micron possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Micron is currently being traded at a Forward P/E ratio of 14.01. This valuation marks a discount compared to its industry average Forward P/E of 19.8.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 81, which puts it in the top 33% of all 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% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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
Micron Technology, Inc. (MU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
