Micron (MU – Free Report) closed the most recent trading day at $44.30, moving +1.64% from the previous trading session. This change outpaced the S&P 500’s 0.03% gain on the day. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq lost 0.05%.
Prior to today’s trading, shares of the chipmaker had lost 7.39% over the past month. This has lagged the Computer and Technology sector’s gain of 2.11% and the S&P 500’s gain of 3.1% in that time.
Wall Street will be looking for positivity from MU as it approaches its next earnings report date. This is expected to be September 20, 2018. The company is expected to report EPS of $3.30, up 63.37% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.22 billion, up 33.86% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for MU. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Within the past 30 days, our consensus EPS projection has moved 2.3% lower. MU currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that MU has a Forward P/E ratio of 3.97 right now. For comparison, its industry has an average Forward P/E of 3.97, which means MU is trading at a no noticeable deviation to the group.
Meanwhile, MU’s PEG ratio is currently 0.49. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Semiconductor Memory industry currently had an average PEG ratio of 0.49 as of yesterday’s close.
The Semiconductor Memory industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 108, putting it in the top 42% 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.
To follow MU in the coming trading sessions, be sure to utilize Zacks.com.