Micron (MU, $53.04) beats fiscal Q1 earnings estimate
Micron reported earnings that surpassed estimates. While the semiconductor company issued a slightly lower-than-expected guidance for its current quarter, the latter represents a cyclical bottom according to the company.
For the first quarter of fiscal year 2020, Micron’s adjusted earnings came in at 48 cents per share, beating the Street expectations of 47 cents.
Revenue was $5.144 billion, exceeding analyst expectations of $4.99 billion.
Adjusted gross margin fell to 27.3% from 59% in the same quarter last year.
Looking ahead, Micron projects current quarter revenue to be between $4.5 billion and $4.8 billion, the midpoint of $4.65 billion being slightly below analysts' forecast of $4.75 billion. The company expects earnings-per-share to range between 31 and 41 cents, the midpoint of 36 cents being lower than analysts’ expectations of 39 cents.
"With our strong execution and improving industry conditions, we are optimistic that Micron's fiscal second quarter will be the cyclical bottom for our financial performance," said CEO Sanjay Mehrotra.
MU saw its Stochastic Oscillator recovers from the overbought zone
The Stochastic Oscillator for MU moved out of overbought territory on June 01, 2023. This could be a bearish sign for the stock and investors may want to consider selling or taking a defensive position. A.I.dvisor looked at 61 similar instances where the indicator exited the overbought zone. In of the 61 cases the stock moved lower. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for MU moved out of overbought territory on May 30, 2023. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 32 similar instances where the indicator moved out of overbought territory. In of the 32 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MU declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
MU broke above its upper Bollinger Band on May 26, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on May 15, 2023. You may want to consider a long position or call options on MU as a result. In of 100 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for MU just turned positive on May 15, 2023. Looking at past instances where MU's MACD turned positive, the stock continued to rise in of 48 cases over the following month. The odds of a continued upward trend are .
Following a +1 3-day Advance, the price is estimated to grow further. Considering data from situations where MU advanced for three days, in of 304 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 227 cases where MU Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.579) is normal, around the industry mean (7.010). P/E Ratio (48.309) is within average values for comparable stocks, (53.973). Projected Growth (PEG Ratio) (1.113) is also within normal values, averaging (2.567). Dividend Yield (0.007) settles around the average of (0.024) among similar stocks. P/S Ratio (3.261) is also within normal values, averaging (11.673).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. MU’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 63, placing this stock slightly better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a manufacturer of advanced semiconductor solutions such as DRAMs, NAND flash memory, CMOS image sensors, other semiconductor components and memory modules
Industry Semiconductors
MU and
Correlation & Price change
A.I.dvisor indicates that over the last year, MU has been closely correlated with SWKS. These tickers have moved in lockstep 77% of the time. This A.I.-generated data suggests there is a high statistical probability that if MU jumps, then SWKS could also see price increases.
