Micron (MU) closed the most recent trading day at $383.50, moving -2.84% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.47%. On the other hand, the Dow registered a gain of 0.04%, and the technology-centric Nasdaq increased by 0.9%.
Prior to today's trading, shares of the chipmaker had gained 14.37% outpaced the Computer and Technology sector's loss of 1.96% and the S&P 500's loss of 0.16%.
The investment community will be paying close attention to the earnings performance of Micron in its upcoming release. The company is expected to report EPS of $8.4, up 438.46% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $18.71 billion, reflecting a 132.33% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $32.9 per share and revenue of $73.3 billion, which would represent changes of +296.86% and +96.11%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Micron. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.31% higher. Micron is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at valuation, Micron is presently trading at a Forward P/E ratio of 12. This expresses a discount compared to the average Forward P/E of 23.92 of its industry.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 27, finds itself in the top 12% echelons 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Micron Technology, Inc. (MU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
