Micron (MU) ended the recent trading session at $116.47, demonstrating a -1.03% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.43%. Elsewhere, the Dow saw a downswing of 0.77%, while the tech-heavy Nasdaq depreciated by 0.22%.
Heading into today, shares of the chipmaker had gained 5.77% over the past month, outpacing the Computer and Technology sector's gain of 2.56% and the S&P 500's gain of 2.65%.
Analysts and investors alike will be keeping a close eye on the performance of Micron in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.77, marking a 134.75% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $11.07 billion, indicating a 42.82% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $8.04 per share and a revenue of $36.91 billion, demonstrating changes of +518.46% and +46.98%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Micron. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding 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 sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Micron currently has a Forward P/E ratio of 14.64. Its industry sports an average Forward P/E of 19.57, so one might conclude that Micron is trading at a discount comparatively.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 31, this industry ranks in the top 13% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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