MU Stock Predictions: Strong Stock Performance in May 2016 and Improving Market Environment Lead to Analyst Upgrades

Dario Biasini is a Financial Analyst Intern at I Know First.


Micron Technology Stock Prediction

June 2nd, 2016


  • MU logoMU registers an outstanding May 2016 (+23.26% return)
  • Analyst consensus indicates that the company will Outperform the market
  • Earnings for the Second Quarter of 2016 in the higher end of expectations
  • The I Know First Algorithm maintains its strong Buy recommendation for MU

Micron Technologies Inc (MU) registered considerable growth in May, as the stock price surged +23.26% and significantly outperformed its main competitor Samsung Electronics Co Ltd (005930:KS) which returned +8.88%. Investment advisor Robert W. Baird recently upgraded its rating of MU, tipping the consensus among analysts from Hold to Outperform.


stock price

MU vs Samsung stock price since 05/02/2016

(Source: Bloomberg)

The stock price was buoyed by improved expectations for the PC and mobile phone markets set to rebound from their recent decline. Moreover, investors’ positive sentiment regarding the company’s prognosticated strong double-digit bit growth and related cost reductions for DRAM (responsible for 54% of Micro’s Total Revenue in FQ2-16) in FQ3 as a result of the deployment of 20nm technology spurred the company to outperform the market leader Samsung. See our November 12th article for more details.

pc shipments by device type

(Source: Gartner)

Financial results for the second quarter were impacted by continued weakness in the PC market, seasonality, and timing of product launches in other segments. Micron registered earnings per share (EPS) of -$0.05, on the upper end of the -$0.12to -$0.05 range expected in the first quarter. However, revenue for the second quarter came in at $2.9 billion, on the lower end of the $2.9to 3.2 billion range prognosis. The outlook for the third quarter remains in line with the current: expected revenues range from $2.8 to $3.1 billion and EPS from -$0.12 to -$0.05.

micron revenue

Micron Technology Inc Revenues

(Source: Micron Technology Inc.)

I Know First Algorithm maintains its strong Buy recommendation for MU for the 1 month, 3 months, and one-year time horizons. The one-year 895.02 score indicates a strong bullish signal with .59 predictability.

ikf forecast


In addition the I Know First Algorithm has predicted in the past the bullish movement of MU stock in this forecast from May 19th to May 26th, 2016. Showing a bullish signal of 12.15 and predictability of 0.19 managing to bring 18.91% return in just 7 days.

mu stock predictions