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Micron (MU) Stock Sinks As Market Gains: What You Should Know

Micron (MU) closed at $73.16 in the latest trading session, marking a -1.14% move from the prior day.

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This story originally appeared on Zacks

Micron (MU) closed the most recent trading day at $73.16, moving -1.14% from the previous trading session. This move lagged the S&P 500's daily gain of 0.43%.

- Zacks

Heading into today, shares of the chipmaker had lost 4.61% over the past month, lagging the Computer and Technology sector's gain of 4.49% and the S&P 500's gain of 2.56% in that time.

Investors will be hoping for strength from MU as it approaches its next earnings release, which is expected to be September 28, 2021. In that report, analysts expect MU to post earnings of $2.31 per share. This would mark year-over-year growth of 113.89%. Our most recent consensus estimate is calling for quarterly revenue of $8.19 billion, up 35.28% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.95 per share and revenue of $27.5 billion. These totals would mark changes of +110.25% and +28.3%, respectively, from last year.

Any recent changes to analyst estimates for MU should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MU is currently a Zacks Rank #3 (Hold).

Digging into valuation, MU currently has a Forward P/E ratio of 12.44. For comparison, its industry has an average Forward P/E of 12.44, which means MU is trading at a no noticeable deviation to the group.

Investors should also note that MU has a PEG ratio of 0.97 right now. 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 0.97 at yesterday's closing price.

The Semiconductor Memory industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 122, which puts it in the top 49% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.



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