Micron (MU) closed the most recent trading day at $399.78, moving -2.89% from the previous trading session. This change lagged the S&P 500's 0.1% gain on the day. Meanwhile, the Dow gained 0.07%, and the Nasdaq, a tech-heavy index, added 0.14%.
Prior to today's trading, shares of the chipmaker had gained 13.48% outpaced the Computer and Technology sector's loss of 4.05% and the S&P 500's loss of 1.43%.
Analysts and investors alike will be keeping a close eye on the performance of Micron in its upcoming earnings disclosure. The company's upcoming EPS is projected at $8.5, signifying a 444.87% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $18.87 billion, reflecting a 134.29% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $33.78 per share and a revenue of $74.62 billion, representing changes of +307.48% and +99.65%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Micron. These revisions help to show the ever-changing nature of 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.85% higher. Micron presently features a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Micron has a Forward P/E ratio of 12.19 right now. This expresses a discount compared to the average Forward P/E of 23.18 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 24, finds itself in the top 10% echelons of all 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.
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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