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Micron (MU) Stock Sinks As Market Gains: What You Should Know

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Micron (MU - Free Report) closed at $50.44 in the latest trading session, marking a -0.08% move from the prior day. This move lagged the S&P 500's daily gain of 0.29%. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq added 0.3%.

Coming into today, shares of the chipmaker had gained 20.08% in the past month. In that same time, the Computer and Technology sector gained 3.47%, while the S&P 500 gained 2.99%.

Investors will be hoping for strength from MU as it approaches its next earnings release, which is expected to be September 26, 2019. The company is expected to report EPS of $0.46, down 86.97% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.51 billion, down 46.51% from the year-ago period.

Investors should also note any recent changes to analyst estimates for MU. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.91% higher. MU is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, MU currently has a Forward P/E ratio of 19.86. For comparison, its industry has an average Forward P/E of 19.86, which means MU is trading at a no noticeable deviation to the group.

The Semiconductor Memory industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 4, which puts it in the top 2% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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