In the latest trading session, Micron (MU) closed at $57.94, marking a +0.87% move from the previous day. This move lagged the S&P 500's daily gain of 1.06%. Meanwhile, the Dow gained 0.71%, and the Nasdaq, a tech-heavy index, added 0.09%.
Prior to today's trading, shares of the chipmaker had lost 11.69% over the past month. This has lagged the Computer and Technology sector's loss of 4.33% and the S&P 500's loss of 1.14% in that time.
Wall Street will be looking for positivity from Micron as it approaches its next earnings report date. This is expected to be September 29, 2022. The company is expected to report EPS of $1.52, down 37.19% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.94 billion, down 16.16% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Micron. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Micron currently has a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, Micron is holding a Forward P/E ratio of 10.2. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 10.2.
It is also worth noting that MU currently has a PEG ratio of 0.76. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Semiconductor Memory stocks are, on average, holding a PEG ratio of 0.76 based on yesterday's closing prices.
The Semiconductor Memory industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 250, putting it in the bottom 1% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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