Micron (MU) closed at $941.10 in the latest trading session, marking a -6.98% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.69%. Elsewhere, the Dow saw a downswing of 0.22%, while the tech-heavy Nasdaq depreciated by 1.33%.
The chipmaker's stock has climbed by 16.9% in the past month, exceeding the Computer and Technology sector's gain of 5.97% and the S&P 500's gain of 3.96%.
Market participants will be closely following the financial results of Micron in its upcoming release. In that report, analysts expect Micron to post earnings of $31.39 per share. This would mark year-over-year growth of 935.97%. Meanwhile, our latest consensus estimate is calling for revenue of $50.76 billion, up 348.58% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $73.86 per share and a revenue of $129.61 billion, demonstrating changes of +790.95% and +246.76%, respectively, from the preceding 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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.01% rise in the Zacks Consensus EPS estimate. At present, Micron boasts a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Micron has a Forward P/E ratio of 13.7 right now. This indicates a discount in contrast to its industry's Forward P/E of 21.51.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 43, finds itself in the top 18% echelons 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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