Micron Technology, Inc. (MU) Hits Fresh High: Is There Still Room to Run?

Core Viewpoint - Micron Technology (MU) has shown strong stock performance, with a 31.4% increase over the past month and a 201% gain since the beginning of the year, outperforming both the Zacks Computer and Technology sector and the Zacks Computer - Integrated Systems industry [1][2]. Performance Metrics - Micron has consistently exceeded earnings expectations, reporting an EPS of $3.03 against a consensus estimate of $2.86 in its latest earnings report [2]. - For the current fiscal year, Micron is projected to achieve earnings of $16.22 per share on revenues of $53.27 billion, reflecting a 95.66% increase in EPS and a 42.51% increase in revenues [3]. - The next fiscal year forecasts earnings of $18.57 per share on revenues of $60.71 billion, indicating year-over-year changes of 14.53% and 13.97%, respectively [3]. Valuation Metrics - Micron's current valuation metrics show a Price-to-Earnings (P/E) ratio of 15.6X for the current fiscal year, significantly lower than the peer industry average of 26.6X [7]. - The trailing cash flow basis shows a valuation of 16.7X compared to the peer group's average of 24X, and a PEG ratio of 0.55, suggesting that Micron is not in the top tier from a value perspective [7]. Zacks Rank - Micron holds a Zacks Rank of 1 (Strong Buy), driven by rising earnings estimates, which aligns with the recommendation for investors to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [8].