Trade-Ideas: Micron Technology (MU) Is Today's Pre-Market Laggard Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Micron Technology ( MU) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Micron Technology as such a stock due to the following factors:

  • MU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $463.3 million.
  • MU traded 1.2 million shares today in the pre-market hours as of 9:09 AM.
  • MU is down 2% today from Friday's close.

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More details on MU:

Micron Technology, Inc., together with its subsidiaries, engages in the manufacture and marketing of semiconductor devices worldwide. Currently there are 14 analysts that rate Micron Technology a buy, 2 analysts rate it a sell, and 8 rate it a hold.

The average volume for Micron Technology has been 42.5 million shares per day over the past 30 days. Micron Technology has a market cap of $14.4 billion and is part of the technology sector and electronics industry. The stock has a beta of 2.01 and a short float of 8.4% with 2.74 days to cover. Shares are up 118.6% year to date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Micron Technology as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and compelling growth in net income. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 13.6%. Since the same quarter one year prior, revenues slightly increased by 6.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 112.50% and other important driving factors, this stock has surged by 119.30% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • MICRON TECHNOLOGY INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MICRON TECHNOLOGY INC swung to a loss, reporting -$1.04 versus $0.15 in the prior year. This year, the market expects an improvement in earnings (-$0.29 versus -$1.04).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, MICRON TECHNOLOGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has declined marginally to $624.00 million or 9.03% when compared to the same quarter last year. Despite a decrease in cash flow MICRON TECHNOLOGY INC is still fairing well by exceeding its industry average cash flow growth rate of -22.45%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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