Looks like a safe play between $7.60 and $10.00 in the near future.
Micron Technology (MU) makes semiconductors. Micron swung to a fiscal fourth-quarter profit of $342 million, or 32 cents a share, as revenue surged 91% to $2.5 billion. The operating margin turned positive. Micron’s stock sells for a trailing earnings multiple of 3.8, a forward earnings multiple of 6, a book value multiple of 0.9, a sales multiple of 0.8 and a cash flow multiple of 2.3 — 82%, 54%, 84%, 75% and 84% discounts to semiconductor industry averages. Of analysts following Micron, 14 rate its stock “buy”, nine rate it “hold” and just one ranks it “sell.”
Bullish Scenario: Raymond James Financial forecasts that Micron’s stock will rise 138% to $18.
Source: TheStreet.com
MU Industry: Semiconductor- Memory Chips
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.