Micron Technology Inc.'s Buy Recommendation Supported

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.

NEW YORK ( TheStreet) -- Micron Technology (Nasdaq: MU) has been reiterated by TheStreet Ratings as a buy with a ratings score of B. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 9.3%. Since the same quarter one year prior, revenues rose by 44.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 729.16% and other important driving factors, this stock has surged by 256.62% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MU should continue to move higher despite the fact that it has already enjoyed a very nice gain 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. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MICRON TECHNOLOGY INC turned its bottom line around by earning $1.00 versus -$1.04 in the prior year. This year, the market expects an improvement in earnings ($2.13 versus $1.00).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 802.9% when compared to the same quarter one year prior, rising from -$243.00 million to $1,708.00 million.

Micron Technology, Inc., together with its subsidiaries, manufactures and markets semiconductor solutions worldwide. Micron Technology has a market cap of $20.9 billion and is part of the technology sector and electronics industry. The company has a P/E ratio of 18.00, below the S&P 500 P/E ratio of 18.00. Shares are up 213.2% year to date as of the close of trading on Tuesday.

You can view the full Micron Technology Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

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