Chipmaker Micron Technology Inc. (MU) has been on a tear since TheStreet Ratings first upgraded it from Hold to Buy back on March 24, 2017.
At that time, shares stood at $28.43, with the memory chip maker closing at $52.84 on Thursday, July 5, for a gain of 85.9%. TheStreet Ratings has consistently maintained a Buy rating on Micron since the initial upgrade.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate Micron Technology as a Buy with a ratings score of B+. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and expanding profit margins. 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 analysis by TheStreet Ratings Team are as follows:
- The revenue growth came in higher than the industry average of 16.8%. Since the same quarter one year prior, revenues rose by 40.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- MU's debt-to-equity ratio is very low at 0.26 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, MU has a quick ratio of 2.04, which demonstrates the ability of the company to cover short-term liquidity needs.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, Micron Technology's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The gross profit margin for Micron Technology is currently very high, coming in at 76.39%. It has increased significantly from the same period last year. Along with this, the net profit margin of 49.03% significantly outperformed against the industry average.
- You can view the full analysis from the report here: MU
-- Reported by Kevin Baker in Palm Beach Gardens, FL