In the latest trading session, Micron (MU) closed at $122.00, marking a -1.26% move from the previous day. This change lagged the S&P 500's daily loss of 0.59%. Meanwhile, the Dow gained 0.02%, and the Nasdaq, a tech-heavy index, lost 1.46%.
Coming into today, shares of the chipmaker had gained 9.11% in the past month. In that same time, the Computer and Technology sector gained 3.91%, while the S&P 500 gained 2.49%.
The upcoming earnings release of Micron will be of great interest to investors. In that report, analysts expect Micron to post earnings of $2.77 per share. This would mark year-over-year growth of 134.75%. Simultaneously, our latest consensus estimate expects the revenue to be $11.07 billion, showing a 42.82% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.04 per share and a revenue of $36.91 billion, representing changes of +518.46% and +46.98%, respectively, from the prior year.
Investors should also note any recent changes 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. Within the past 30 days, our consensus EPS projection has moved 3.55% higher. Micron is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Micron is currently exchanging hands at a Forward P/E ratio of 15.37. This represents a discount compared to its industry average Forward P/E of 18.93.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 78, finds itself in the top 32% echelons 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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