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Micron (MU) Gains But Lags Market: What You Should Know

Micron (MU) closed at $58.93 in the latest trading session, marking a +0.53% move from the prior day. The stock lagged the S&P 500's daily gain of 0.59%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq gained 0.02%.

Prior to today's trading, shares of the chipmaker had gained 4.92% over the past month. This has outpaced the Computer and Technology sector's gain of 4.63% and lagged the S&P 500's gain of 6.89% in that time.

Investors will be hoping for strength from Micron as it approaches its next earnings release, which is expected to be December 21, 2022. On that day, Micron is projected to report earnings of $0.03 per share, which would represent a year-over-year decline of 98.61%. Our most recent consensus estimate is calling for quarterly revenue of $4.23 billion, down 44.99% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.02 per share and revenue of $18.47 billion, which would represent changes of -99.76% and -39.95%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Micron. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 has moved 77% lower. Micron is currently a Zacks Rank #4 (Sell).

In terms of valuation, Micron is currently trading at a Forward P/E ratio of 2791.43. This represents a no noticeable deviation compared to its industry's average Forward P/E of 2791.43.

Also, we should mention that MU has a PEG ratio of 723.17. 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 industry currently had an average PEG ratio of 723.17 as of yesterday's close.

The Semiconductor Memory industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 238, which puts it in the bottom 6% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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 Report

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