In the latest trading session, Micron (MU) closed at $226.63, marking a +2.13% move from the previous day. At the same time, the Dow lost 0.16%, and the tech-heavy Nasdaq gained 0.55%.
Coming into today, shares of the chipmaker had gained 32.63% in the past month. In that same time, the Computer and Technology sector gained 6.92%, while the S&P 500 gained 3.83%.
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 $3.75, marking a 109.5% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $12.51 billion, up 43.7% from the prior-year quarter.
MU's full-year Zacks Consensus Estimates are calling for earnings of $16.22 per share and revenue of $53.27 billion. These results would represent year-over-year changes of +95.66% and +42.51%, respectively.
Investors might also notice recent changes to analyst estimates for Micron. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Micron possesses a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, Micron is currently exchanging hands at a Forward P/E ratio of 13.69. This represents a discount compared to its industry average Forward P/E of 24.45.
Also, we should mention that MU has a PEG ratio of 0.48. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Computer - Integrated Systems industry was having an average PEG ratio of 1.43.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 13, putting it in the top 6% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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