Micron Technology shares got a rating upgrade by Morgan Stanley, on hopes for near-term boost from rising DRAM prices.
Morgan Stanley analysts raised their rating on the computer memory/data storage company’s stock to equal weight from underweight. Joseph Moore indicated in a note that DRAM prices are rising as trade tensions are spurring companies to accumulate inventory, leading him to revise the previous rating on Micron. Spot prices of DRAM have rallied over 20% in the last three weeks, according to Moore.
However, Moore believes that DRAM market would be largely oversupplied in the longer-term. Once global geopolitical risks subside, DRAM and NAND prices will likely start dropping once again, according to Moore. This could push Micron’s cash flow into negative territory and its share price at around book value, as indicated by the analyst.
But Moore also mentioned another, more positive scenario for Micron. If cloud and smartphone inventory builds reaccelerate, Micron could experience tailwinds in 2020 and its stock could touch new highs – according to Moore.
MU saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on April 12, 2024. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 47 instances where the indicator turned negative. In of the 47 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
The 10-day RSI Indicator for MU moved out of overbought territory on April 12, 2024. 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 41 similar instances where the indicator moved out of overbought territory. In of the 41 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on April 15, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on MU as a result. In of 97 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
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 March 21, 2024. 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.
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MU advanced for three days, in of 312 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 244 cases where MU Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
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 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 62, placing this stock better than average.
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 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 (2.936) is normal, around the industry mean (6.473). P/E Ratio (0.000) is within average values for comparable stocks, (120.628). MU's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (2.560). Dividend Yield (0.004) settles around the average of (0.021) among similar stocks. P/S Ratio (6.978) is also within normal values, averaging (34.564).
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.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of advanced semiconductor solutions such as DRAMs, NAND flash memory, CMOS image sensors, other semiconductor components and memory modules
Industry Semiconductors