Shares of Micron (MU) have been strong performers lately, with the stock up 10.5% over the past month. The stock hit a new 52-week high of $131.41 in the previous session. Micron has gained 56.1% since the start of the year compared to the 15.4% move for the Zacks Computer and Technology sector and the 26.4% return for the Zacks Computer - Integrated Systems industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on June 25, 2025, Micron reported EPS of $1.91 versus consensus estimate of $1.59 while it beat the consensus revenue estimate by 5.27%.
For the current fiscal year, Micron is expected to post earnings of $13.05 per share on $36.91 in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $15.59 per share on $49.43 in revenues. This represents a year-over-year change of 60.79% and 33.93%, respectively.
Valuation Metrics
Micron may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Micron has a Value Score of C. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 10.1X current fiscal year EPS estimates, which is not in-line with the peer industry average of 20.3X. On a trailing cash flow basis, the stock currently trades at 17.3X versus its peer group's average of 23.1X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Micron currently has a Zacks Rank of #1 (Strong Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Micron passes the test. Thus, it seems as though Micron shares could have potential in the weeks and months to come.
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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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