Micron (MU) Registers a Bigger Fall Than the Market: Important Facts to Note

In the latest market close, Micron (MU) reached $103.19, with a -1.57% movement compared to the previous day. The stock fell short of the S&P 500, which registered a loss of 0.29% for the day. Meanwhile, the Dow experienced a drop of 0.32%, and the technology-dominated Nasdaq saw a decrease of 0.5%.

The the stock of chipmaker has risen by 16.72% in the past month, leading the Computer and Technology sector's gain of 1.8% and the S&P 500's gain of 2.52%.

The upcoming earnings release of Micron will be of great interest to investors. It is anticipated that the company will report an EPS of $1.43, marking a 240.48% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $7.9 billion, up 35.6% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.90 per share and a revenue of $35.31 billion, representing changes of +430.77% and +40.63%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Micron. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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, there's been a 0.59% rise in the Zacks Consensus EPS estimate. Right now, Micron possesses a Zacks Rank of #3 (Hold).

In the context of valuation, Micron is at present trading with a Forward P/E ratio of 15.2. For comparison, its industry has an average Forward P/E of 18.24, which means Micron is trading at a discount to the group.

The Computer - Integrated Systems industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 171, this industry ranks in the bottom 32% of all industries, numbering over 250.

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.