$MU, $RMBS, $SGH Lead the Charge: Semiconductor Companies Surge with a Remarkable +7.73% Performance Boost in the Past Week
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have witnessed an impressive +7.73% surge in performance over the past week, capturing market attention and raising questions about the sustainability of this growth. Within this dynamic landscape, we will dissect the performances of Micron Technology (MU), Rambus (RMBS), and SMART Global Holdings (SGH), shedding light on key indicators and trends shaping their trajectories.
1. Momentum Indicator Spells Caution for MU: Theme Overview: Micron Technology (MU) has been a standout performer, recently experiencing a +10.56% weekly jump. However, the Momentum Indicator turned negative on January 8, 2024, signaling a potential shift in the trend. This warrants caution for investors.
MU's Position: Despite the negative momentum, MU currently trades at $83.39, well above the highest resistance line of $53.21 identified by A.I. The price trend witnessed a +12% uptrend from 12/07/23 to 01/10/24 and a modest +0.17% uptrend during the week of 01/03/24 to 01/10/24. However, Tickeron's A.I.dvisor predicts a 76% likelihood of a decline, prompting traders to consider selling or exploring put options.
2. RMBS Riding the Upward Trend: Theme Overview: Rambus (RMBS) has demonstrated strength by surpassing its 50-day Moving Average on January 8, 2024, indicating a shift from a downward to an upward trend. This upward trajectory is supported by historical data, with an 88% probability of continued positive movement.
RMBS's Position: Trading at $66.28, RMBS has crossed the resistance line at $57.24, suggesting potential resilience. Throughout the month of 12/07/23 to 01/10/24, the price witnessed a +0.83% uptrend, with a further +2% uptrend during the week of 01/03/24 to 01/10/24.
3. Positive Signals for SGH: Theme Overview: SMART Global Holdings (SGH) presents a unique case with its Moving Average Convergence Divergence (MACD) Histogram turning positive on January 10, 2024. Historical data indicates an 87% chance of a continued upward trend.
SGH's Position: Trading at $20.59, SGH is positioned between the support line at $20.78 and the resistance line at $9.52. Notably, the price experienced a robust +16% uptrend from 12/07/23 to 01/10/24, with an additional +15% uptrend during the week of 01/03/24 to 01/10/24.
Market Dynamics: Negative Outlook: Despite individual successes, the group, comprising MU, RMBS, and SGH, faces a negative outlook today backed by the Momentum Indicator and Tickeron's prediction of a further decline by more than 4.00% within the next month with a 75% likelihood.
Market Cap: The group's average market capitalization stands at 30.6B, ranging from 860.8M to 83.6B. MU holds the highest valuation at 83.6B, while SGH is the least valued at 860.8M.
Volume Surges: Volume Growth: Weekly volume growth across the group averaged 189.41%, with monthly and quarterly averages at 261.4% and 183.41%, respectively. Notably, Rambus and SMART Global Holdings experienced significant volume surges, with record-breaking daily growth.
Summary: The semiconductor theme, led by MU, RMBS, and SGH, presents a mixed picture. While individual stocks exhibit positive trends, caution is warranted due to the negative outlook for the group. Investors must carefully weigh individual stock dynamics against broader market sentiments to make informed decisions in this ever-evolving sector.
MU's Stochastic Oscillator sits in overbought zone for 9 days
The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for MU moved out of overbought territory on May 17, 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 43 similar instances where the indicator moved out of overbought territory. In of the 43 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 06, 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.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on May 02, 2024. You may want to consider a long position or call options on MU as a result. In of 99 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 08, 2024. 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 3-day Advance, the price is estimated to grow further. Considering data from situations where MU advanced for three days, in of 316 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 256 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 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 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 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 (3.163) is normal, around the industry mean (7.025). P/E Ratio (0.000) is within average values for comparable stocks, (54.129). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (3.278). Dividend Yield (0.004) settles around the average of (0.020) among similar stocks. P/S Ratio (7.513) is also within normal values, averaging (33.933).
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