Micron Technology, Inc. was a semiconductor laggard in 2015 and 2016 but came to life at the beginning of 2017 and became one of the strongest momentum stocks so far in 2018. The stock is the sixth largest component of the iShares PHLX Semiconductor ETF and is outperforming this benchmark. The company is set to report earnings after the closing bell on Thursday, March 22.
Micron shares closed Wednesday, March 21, at $61.07, up 48.5% year to date and solidly in bull market territory at 62.8% above the Feb. 9 low of $37.52. The stock set its all-time intraday high of $63.42 with the SOXX on March 13. The SOXX is up 12.2% year to date and is 17% above its Feb. 9 low.
Analysts expect Micron to post earnings per share of $2.69 to $2.81 when the company reports results on Thursday. The company has had a recent history of beating estimates, which has helped the stock become a momentum juggernaut this year. A caution is the supply and demand of the commodity known as DRAM. These computer chips are used in cloud computing, the Internet of Things, artificial intelligence and autonomous driving. Keep in mind that, when Oracle Corporation reported earnings on March 19, the stock crashed on March 20 on disappointing results in the cloud. (See also: Why Micron’s Stock Bulls May Be Wrong.)
Semiconductor giant Micron reports earnings with an overbought weekly chart but is cheap with a P/E ratio of just 9.63. …read more
Read more here: Micron Reports Earnings Against Its All-Time High
Category: MU, SOXX, ORCL