Micron Technology is our ATM stock and with the recent pullback, I think it’s time to make money in this stock pick again.
There’s no sure thing in stock trading but if there was, Micron stock is about as close as it gets.
Premium members know that I pick companies with incredible financials that are making money hand-over-fist, and then long term traders can buy and hold them, while short term traders can swing trade them. Micron fits this bill.
Micron Technology just announced its quarterly earnings yesterday, March 22, 2018, and the results were as incredible as I thought they would be. The company reported EPS of $2.82 which crushed the consensus estimate of $2.55. Revenue also beat coming in at $7.35 billion for the quarter versus the $7.28 billion estimate. Micron Technology’s revenue was up 58.2% year-over-year.
Micron stock is both a value play and a growth play which is extremely rare.
The stock trades at a smoking hot P/E of 8.5 and a Forward P/E of 5.38! No it’s not a value trap. Micron’s profit margin of 32.77% is among the best returns of the industry (semiconductors). Micron outperforms 97% of its industry peers!
Looking at the last year, Micron shows a very strong growth in revenue. Revenue has grown by 77.86%. Measured over the past 5 years, revenue has been growing by 20.61% on average per year.
Consider what Micron stock did during the early February sell-off:
As the blue rectangle areas show, the current 3 day pullback is about the same as the February pullback during the short vol unwind fiasco.
I just took and entry in Micron stock today in anticipation for the next swing move higher.
Disclosure: I just went long Micron stock.
[financial_news symbol=”MU” source=”yahoo,seekingalpha” template=”basic” items=”10″]