Micron (MU) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Micron (MU) closed at $70.45, marking a +0.73% move from the previous day. This change outpaced the S&P 500's 0.31% gain on the day. Meanwhile, the Dow gained 0.05%, and the Nasdaq, a tech-heavy index, added 0.14%.
Heading into today, shares of the chipmaker had lost 0.58% over the past month, outpacing the Computer and Technology sector's loss of 3.62% and the S&P 500's loss of 1.38% in that time.
Micron will be looking to display strength as it nears its next earnings release, which is expected to be June 30, 2022. The company is expected to report EPS of $2.45, up 30.32% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.69 billion, up 17.1% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.54 per share and revenue of $33.55 billion, which would represent changes of +57.43% and +21.1%, respectively, from the prior year.
Investors should also note any 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Micron currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Micron is holding a Forward P/E ratio of 7.33. This represents a no noticeable deviation compared to its industry's average Forward P/E of 7.33.
It is also worth noting that MU currently has a PEG ratio of 0.23. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductor Memory was holding an average PEG ratio of 0.23 at yesterday's closing price.
The Semiconductor Memory industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 106, putting it in the top 42% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Source: Zacks Equity Research
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