Micron (MU) Exceeds Market Returns: Some Facts to Consider

Micron (MU) ended the recent trading session at $956.08, demonstrating a +2.43% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.46%. Meanwhile, the Dow experienced a rise of 0.56%, and the technology-dominated Nasdaq saw an increase of 0.45%.

Shares of the chipmaker witnessed a gain of 4.57% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 4.69%, and outperforming the S&P 500's gain of 2%.

The upcoming earnings release of Micron will be of great interest to investors. The company's earnings report is expected on September 30, 2026. The company is expected to report EPS of $31.39, up 935.97% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $50.76 billion, indicating a 348.58% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $73.86 per share and revenue of $129.61 billion. These totals would mark changes of +790.95% and +246.76%, respectively, from last year.

Investors should also pay attention to any latest changes in analyst estimates for Micron. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.01% upward. Right now, Micron possesses a Zacks Rank of #2 (Buy).

From a valuation perspective, Micron is currently exchanging hands at a Forward P/E ratio of 5.91. This expresses a discount compared to the average Forward P/E of 20.03 of its industry.

It is also worth noting that MU currently has a PEG ratio of 0.59. 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. MU's industry had an average PEG ratio of 0.59 as of yesterday's close.

The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 41, finds itself in the top 17% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

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

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research