MU Stock Forecast For 2019

This article was written by Vladimir Mazepa, a Financial Analyst at I Know First.
 
Micron Technology (NASDAQ: MU) is one of the biggest and most important manufacturers of memory chips for computers. Micron has two main products - NAND chips allowing long-term storage (MP3 players, digital cameras and USB flash drives use NAND technology) and DRAM chips are used for operating memory needs where the memory cells go blank every time you turn the machine off.
My MU stock forecast - is a strong buy. Micron has strong fundamentals and is oversold now. It's a perfect time to buy it with a huge discount!
Why are we bullish in our MU stock forecast? Here is a quick summary:
  • Huge market from smartphones and solid-state storage devices or simply SSD and cloud data centers, artificial intelligence workloads and chips, which are connected in devices and self-driving cars provide huge possibilities for Micron growth and spread.
  • Micron holds and is one of the largest suppliers in DRAM and NAND chips
  • Micron is totally oversold due to investors putting too much emphasis on a trade war with China and markets downturn.
  • Micron is very attractively priced at the moment. It now trades at only 2.65x P/E and 1.05x P/B, Debt to Equity = 0.11. According to the DCF model, the company is quite undervalued and gives you an opportunity to buy it with more than 60% discount.

Micron Stock Forecast: 13.61% Gain Since Bullish Forecast

Micron Stock Forecast: 13.61% Gain Since Bullish Forecast

Micron Technology, Inc. is a global leader in advanced semiconductor systems founded in 1978 with headquarters in Boise, Idaho. On October 23rd, I Know First published an article titled “Micron Stock Forecast: Why The Algorithm Still Forecasts A Bullish Signal For Micron Stock” on Seeking Alpha. The algorithm had a signal strength of 33.08 and a predictability indicator of 0.38. Since that time, the stock price has increased 13.61% in accordance with the algorithm’s prediction.

Micron released their last earnings report on September 25th, where they mostly beat expectations. The company had revenue of $4.23 billion for the quarter, up 48.7% over the prior year. They also posted $0.82 earnings per share, beating expectations by $0.02. During the same quarter the previous year, the company had posted $0.20 earnings per share, also showing immense growth over the previous year. The performance of Micron’s stock price has been similarly impressive. As seen in the figure below, the value of the stock increased 70.87% on November 19th from one year earlier.

Micron Stock Forecast