In the latest trading session, Micron (MU) closed at $124.27, marking a -2.72% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.32% for the day. At the same time, the Dow added 1.04%, and the tech-heavy Nasdaq gained 0.14%.
The chipmaker's shares have seen an increase of 6.36% over the last month, not keeping up with the Computer and Technology sector's gain of 6.64% and outstripping the S&P 500's gain of 3.08%.
Market participants will be closely following the financial results of Micron in its upcoming release. The company's earnings per share (EPS) are projected to be $2.55, reflecting a 116.1% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $10.93 billion, up 41.04% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.92 per share and a revenue of $36.79 billion, signifying shifts of +509.23% and +46.5%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Micron. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.45% higher. At present, Micron boasts a Zacks Rank of #3 (Hold).
In the context of valuation, Micron is at present trading with a Forward P/E ratio of 16.12. This indicates a discount in contrast to its industry's Forward P/E of 18.64.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 99, this industry ranks in the top 41% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Micron Technology, Inc. (MU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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