Micron (MU) ended the recent trading session at $910.43, demonstrating a -5.83% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.28% for the day. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq lost 0.77%.
Shares of the chipmaker witnessed a gain of 4.98% over the previous month, beating the performance of the Computer and Technology sector with its gain of 1.04%, and the S&P 500's gain of 2.31%.
The investment community will be paying close attention to the earnings performance of Micron in its upcoming release. On that day, Micron is projected to report earnings of $31.39 per share, which would represent year-over-year growth of 935.97%. Meanwhile, the latest consensus estimate predicts the revenue to be $50.76 billion, indicating a 348.58% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $73.86 per share and revenue of $129.61 billion, which would represent changes of +790.95% and +246.76%, 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 business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% higher. Micron is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Micron is currently exchanging hands at a Forward P/E ratio of 13.09. This valuation marks a discount compared to its industry average Forward P/E of 21.14.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 59, positioning it in the top 24% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Micron Technology, Inc. (MU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
