Micron (MU) closed at $241.95 in the latest trading session, marking a -1.98% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.92%. Meanwhile, the Dow experienced a drop of 1.18%, and the technology-dominated Nasdaq saw a decrease of 0.84%.
Prior to today's trading, shares of the chipmaker had gained 21.96% outpaced the Computer and Technology sector's gain of 1.64% and the S&P 500's gain of 1.48%.
Analysts and investors alike will be keeping a close eye on the performance of Micron in its upcoming earnings disclosure. In that report, analysts expect Micron to post earnings of $3.77 per share. This would mark year-over-year growth of 110.61%. Meanwhile, the latest consensus estimate predicts the revenue to be $12.54 billion, indicating a 43.97% increase compared to the same quarter of the previous year.
MU's full-year Zacks Consensus Estimates are calling for earnings of $16.22 per share and revenue of $54.48 billion. These results would represent year-over-year changes of +95.66% and +45.76%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Micron. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Micron presently features a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Micron is currently being traded at a Forward P/E ratio of 15.22. Its industry sports an average Forward P/E of 23.93, so one might conclude that Micron is trading at a discount comparatively.
Also, we should mention that MU has a PEG ratio of 0.53. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Computer - Integrated Systems industry stood at 1.12 at the close of the market yesterday.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 35, which puts it in the top 15% 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.
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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