Micron Technology Stock Oversold Bullish Flush Setup

Micron Technology stock has done a rare pullback and looks like a good long entry setup on an oversold flush candlestick.

Micron Technology stock has signaled an oversold bullish flush buy signal on the chart. Look for confirmation on Monday, December 4, 2017, of either a consolidation or candle over candle reversal before taking a long position.

Micron Technology reported earnings back on September 26, 2017. The company reported EPS of $2.02 versus the $1.84 estimate. Revenue also beat coming in at $6.14 billion versus the $5.97 billion estimate. Micron Technology’s quarterly revenue was up an eye-popping 91% year-over-year.

Analysts have become more bullish on Micron Technology stock over the last week. On November 30, 2017, Deutsche Bank reiterated its Buy rating and set a price target of $55. On November 28, 2017, Robert W. Baird reiterated its Outperform rating and set a price target of $60. On November 27, 2017, Morgan Stanley boosted their price target to $55 and reiterated their Overweight rating on the stock.

Overall there is 1 Sell rating, 4 Hold ratings, and a whopping 30 Buy ratings on Micron Technology stock.

Micron Technology is a good seasonal play. Over the next 18 weeks, Micron has on average historically risen by 21.9% based on the past 33 years of stock performance. Micron has risen higher in 25 of those 33 years over the subsequent 18 week period, corresponding to a historical probability of 75%.

Micron Technology, Inc. is engaged in semiconductor systems. The Company’s portfolio of memory technologies, including dynamic random-access memory (DRAM), negative-AND (NAND) Flash and NOR Flash are the basis for solid-state drives, modules, multi-chip packages and other system solutions. You can read more about the company on their website.

Micron Technology Stock

Micron Technology stock shows a bullish candle flush after a pullback.

I really like the bullish flush candlestick after the most recent pullback. Large players volume is trending higher and the Twiggs Money Flow is positive which suggests powerful buying on pullbacks.

Micron Technology is one of the better performing stocks in the market, outperforming 96% of all stocks; however, we don’t have a good setup right now. Prices have been extended to the downside lately. For a good entry it is better to wait for a consolidation.

Micron Technology Inc. Review
4.8

Summary

Profitability

MU has a Return On Assets of 14.40%. This is amongst the best returns in the industry. The industry average is 3.00%. MU outperforms 90% of its industry peers. MU has a Return On Equity of 26.14%. This is amongst the best returns in the industry. The industry average is 11.79%. MU outperforms 87% of its industry peers. MU has a Profit Margin of 25.04%. This is amongst the best returns in the industry. The industry average is 3.40%. MU outperforms 90% of its industry peers. MU has a very good Piotroski-F score of 8.00. This indicates a great health and profitability for MU.

Valuation

With a Price/Earnings Ratio of 9.52, the valuation of MU can be described as very reasonable. MU's Price/Earning Ratio is rather cheap when compared to the industry average which is at 25.72. MU is also cheaper than 86% of the companies in the same industry. The Forward Price/Earnings Ratio of 5.66 indicates a rather cheap valuation of MU. The low PEG Ratio, which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company. When comparing the Enterprise Value to EBITDA ratio of MU to the average industry ratio of 14.18, MU is valued rather cheaply. MU is also cheaper than 89% of the companies listed in the same industry. When comparing the current price to the book value of MU, we can conclude it is valued correctly. It is trading at 2.49 times its book value. When comparing the price book ratio of MU to the average industry price book ratio of 2.74, MU is valued in line with its industry peers.

Growth

The Earnings Per Share has grown by an impressive 1761.91% over the past year. The Earnings Per Share has been growing by 40.57% on average over the past 5 years. This is very strong growth. The Earnings Per Share is expected to grow by 23.71% on average over the next 2 years. Again, this is very strong growth. Revenue has grown by 63.90% in the past year. Revenue has been growing by 19.80% on average over the past 5 years. This is really good. The EPS growth is decreasing: in the next 2 years the growth will be less than in the last years.

Health

MU has a Current Ratio of 2.34. This indicates that MU is financially healthy and has no problem in meeting its short term obligations. MU has an Altman-Z score of 3.48. This indicates that MU is financially healthy and little risk of bankruptcy at the moment. The Piotroski-F score of MU is 8. This is a very strong score and indicates great health and profitability for MU. MU has a Current Ratio comparable to the industry average, which is at 2.99. MU has a Quick Ratio of 1.75. This is a normal value and indicates that MU is financially healthy and should not expect problems in meeting its short term obligations. The Quick Ratio is in line with the industry averages, which is at 2.11. The Altman-Z score is in line with the industry averages, which is at 3.19. When comparing the Debt to Equity Ratio of MU to the average industry Debt to Equity Ratio of 0.17, MU required more debt to finance its operations than its industry peers.

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Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on GuerillaStockTrading.com unless specifically stated in the article. Owner of GuerillaStockTrading.com. Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.
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Author: Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on GuerillaStockTrading.com unless specifically stated in the article. Owner of GuerillaStockTrading.com. Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.

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