In the latest market close, Micron (MU) reached $113.39, with a +1.39% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.74%.
Shares of the chipmaker witnessed a gain of 9.96% over the previous month, beating the performance of the Computer and Technology sector with its gain of 3.99% and the S&P 500’s gain of 3.16%.
Analysts and investors alike will be keeping a close eye on the performance of Micron in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.75, showcasing a 284.21% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $8.71 billion, up 84.33% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $8.66 per share and a revenue of $38.12 billion, demonstrating changes of +566.15% and +51.79%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Micron. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the company’s business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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, the Zacks Consensus EPS estimate has remained steady. Micron is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Micron is currently trading at a Forward P/E ratio of 12.91. This denotes a discount relative to the industry’s average Forward P/E of 15.27.
The Computer – Integrated Systems industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 83, this industry ranks in the top 33% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
