Micron (MU) closed at $218.03 in the latest trading session, marking a -7.1% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 1.17%. Meanwhile, the Dow lost 0.53%, and the Nasdaq, a tech-heavy index, lost 2.04%.
The stock of chipmaker has risen by 22.91% in the past month, leading the Computer and Technology sector's gain of 5.49% and the S&P 500's gain of 2.12%.
Analysts and investors alike will be keeping a close eye on the performance of Micron in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $3.75, reflecting a 109.5% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.51 billion, up 43.7% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $16.22 per share and a revenue of $53.27 billion, indicating changes of +95.66% and +42.51%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Micron. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 past month, the Zacks Consensus EPS estimate has remained steady. Right now, Micron possesses a Zacks Rank of #1 (Strong Buy).
Investors should also note Micron's current valuation metrics, including its Forward P/E ratio of 14.47. This expresses a discount compared to the average Forward P/E of 25.58 of its industry.
Also, we should mention that MU has a PEG ratio of 0.51. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Computer - Integrated Systems industry stood at 1.28 at the close of the market yesterday.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 11, placing it within the top 5% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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