Micron Technology in Overbought Territory Heading in to Earnings
In addition to writing for Tickeron, I also write independently at Seeking Alpha (SA). In June 2018, I made a concerted effort to increase my article submissions at SA and one of the first articles I wrote back then was an earnings preview on Micron Technology (MU). In that article I urged readers to take a cautious stance on the stock due to how bullish investors appeared to be at the time. I liked the fundamentals on the stock, but the stock had rallied sharply and the sentiment indicators were concerning.
Two and a half years ago, earnings and sales growth were the highlights of the fundamental picture. The return on equity and profit margin were also really good. Again, the fundamental picture wasn’t the problem. We see on the chart below that the stock had doubled in less than a year. The blue arrow shows when my article was published. You can see how the 10-week RSI and the weekly stochastic indicators were right at the edge of overbought territory. Look where they are now—they’re even higher and they just made a turn lower.
As I mentioned earlier, the sentiment indicators were also a problem. There were 30 analysts covering the stock back then and 27 of the 30 had the stock rated as a “buy”. The other three had the stock rated as a “hold”. Now there are 35 analysts covering the stock with 28 “buy” ratings, five “hold” ratings, and two “sell” ratings. This means the buy percentage fell from 90% to 80%. The buy percentage is still higher than the average stock, but has come down some.
The short interest ratio was low at 1.14 in June ’18 and it’s at 1.92 currently. The indicator is still more bullish than the average stock, but like the analysts ratings, it’s not as bullish as it used to be.
Another factor in why I was urging investors to be cautious was a big jump in the earnings estimates ahead of the report. In the 30 days leading up to the report, the consensus EPS estimate jumped from $2.85 to $3.12. The company itself had issued statements, adjusting its guidance and analysts adjusted too. Looking at today’s consensus EPS estimate, it’s at $0.71 and it was at $0.47 just 30 days ago.
The situation is starting to look very similar to what we saw in 2018. The stock has more than doubled in the last eight months and it’s in overbought territory. The sentiment indicators suggest that the stock is getting a lot of love from analysts and short sellers, and the consensus estimate has jumped significantly in the last 30 days. However, the fundamentals aren’t as good as they used to be.
The earnings and sales growth are still decent, but they aren’t nearly as good as they were two and a half years ago. The ROE is below average now and the profit margin is in the average range.
The changes in the fundamentals and the overbought status helps explain why Tickeron’s scorecard has Micron Technology rated as a “sell” right now.
Contributor
Harry Richardson — Algorithmic Trader & Strategy Developer Harry is an algorithmic trader specializing in impulse and breakout trading strategies across cryptocurrency and equity markets. With more than 10 years of experience in developing automated trading systems, he focuses on building structured algorithms designed to capture momentum while maintaining strict risk control. His approach combines quantitative analysis, real-market execution, and continuous performance monitoring. Vitalii prioritizes risk management, drawdown control, and strategy stability over short-term optimization, ensuring algorithms are adaptable to changing market conditions. He has developed and tested hundreds of automated strategies, working extensively with live trading environments, forward testing, and portfolio-level algorithm management. His work centers on transforming trading ideas into fully operational, scalable automated systems.
Momentum Indicator for MU turns positive, indicating new upward trend
MU saw its Momentum Indicator move above the 0 level on September 04, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 85 similar instances where the indicator turned positive. In of the 85 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for MU just turned positive on August 06, 2026. 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 .
MU moved above its 50-day moving average on September 02, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for MU crossed bullishly above the 50-day moving average on September 03, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 19 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MU advanced for three days, in of 330 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 312 cases where MU Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
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 September 04, 2026. 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.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding 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 SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable 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.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent 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 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 Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued 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 (11.211) is normal, around the industry mean (7.279). P/E Ratio (22.610) is within average values for comparable stocks, (156.799). Projected Growth (PEG Ratio) (0.147) is also within normal values, averaging (1.628). MU has a moderately low Dividend Yield (0.001) as compared to the industry average of (0.015). P/S Ratio (12.626) is also within normal values, averaging (54.185).
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
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
Advertisement