Shopping Cart

Call us toll free: +1 789 2000

Free worldwide shipping on all orders over $50.00

Here's Why We Think Micron Technology (NASDAQ:MU) Is Well Worth Watching – Yahoo Finance

Amid the most challenging market in decades, Sofi strategist Liz Young joins Jared Blikre to help investors navigate volatility.
The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even companies that have no revenue, no profit, and a record of falling short, can manage to find investors. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away.
So if this idea of high risk and high reward doesn’t suit, you might be more interested in profitable, growing companies, like Micron Technology (NASDAQ:MU). Now this is not to say that the company presents the best investment opportunity around, but profitability is a key component to success in business.
View our latest analysis for Micron Technology
Even modest earnings per share growth (EPS) can create meaningful value, when it is sustained reliably from year to year. So EPS growth can certainly encourage an investor to take note of a stock. Impressively, Micron Technology’s EPS catapulted from US$3.69 to US$8.99, over the last year. It’s a rarity to see 144% year-on-year growth like that. Shareholders will be hopeful that this is a sign of the company reaching an inflection point.
It’s often helpful to take a look at earnings before interest and tax (EBIT) margins, as well as revenue growth, to get another take on the quality of the company’s growth. The music to the ears of Micron Technology shareholders is that EBIT margins have grown from 20% to 35% in the last 12 months and revenues are on an upwards trend as well. That’s great to see, on both counts.
You can take a look at the company’s revenue and earnings growth trend, in the chart below. For finer detail, click on the image.
The trick, as an investor, is to find companies that are going to perform well in the future, not just in the past. While crystal balls don’t exist, you can check our visualization of consensus analyst forecasts for Micron Technology’s future EPS 100% free.
Since Micron Technology has a market capitalisation of US$65b, we wouldn’t expect insiders to hold a large percentage of shares. But we do take comfort from the fact that they are investors in the company. Indeed, they have a considerable amount of wealth invested in it, currently valued at US$158m. This comes in at 0.2% of shares in the company, which is a fair amount of a business of this size. So despite their percentage holding being low, company management still have plenty of reasons to deliver the best outcomes for investors.
Micron Technology’s earnings per share have been soaring, with growth rates sky high. This level of EPS growth does wonders for attracting investment, and the large insider investment in the company is just the cherry on top. The hope is, of course, that the strong growth marks a fundamental improvement in the business economics. So at the surface level, Micron Technology is worth putting on your watchlist; after all, shareholders do well when the market underestimates fast growing companies. Of course, identifying quality businesses is only half the battle; investors need to know whether the stock is undervalued. So you might want to consider this free discounted cashflow valuation of Micron Technology.
Although Micron Technology certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see insider buying, then this free list of growing companies that insiders are buying, could be exactly what you’re looking for.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
Related Quotes
Here comes the final phase of the bear market, where everything must fall, and it's already under way.
“The dollar’s relentless strength at this point is a time bomb for global financial markets and the economy,” writes Rosenberg Research founder David Rosenberg.
(Bloomberg) — SK Hynix Inc. is considering cutting its 2023 capital expenditure by about a quarter to 16 trillion won ($12.2 billion) in response to slower electronics demand than anticipated, people familiar with the matter said. Most Read from BloombergManchin in Driver’s Seat Again After Inflation Fears VindicatedIvana Trump, First Wife of Former President, Dies At 73Musk Seeks to Block ‘Warp Speed’ Twitter Trial Over $44 Billion DealThe Most Hated Justice on the Supreme CourtThe world’s sec
We have an initial price objective but traders should be ready to pivot if the broad market averages falter.
When we invest, we're generally looking for stocks that outperform the market average. And while active stock picking…
It hasn't been the best quarter for Entergy Corporation ( NYSE:ETR ) shareholders, since the share price has fallen 12…
S&P Global Market Intelligence Principal Analyst Nathan Stovall joins Yahoo Finance Live to discuss big bank earnings, the positives of rising interest rates, and the outlook for the economy.
Goldman Sachs slashed its earnings forecast for chipmakers and semiconductors due to fears of a slowdown in global growth.
The market is unstable. Your portfolio doesn’t need to be.
The lumber market has taken some big hits from rising inflation and a slowdown in the housing market, with lumber prices down more than 40% in the first six months of the year. Lumber has bucked the overall uptrend in the commodities market. The S&P Goldman Sachs Commodity Index, composed of 24 exchange-traded commodity futures contracts, jumped 26% in 2022’s first half.
Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) is joining its tech peers in a stock split. The trillion-dollar tech giant, which is the parent company of Google, plans to do a 20:1 stock split on Friday, July 15. If you're aiming to buy Alphabet before the stock split, the clock is ticking.
Warren Buffett’s long-term outlook on investments has proven successful over the years, with Berkshire Hathaway (NYSE: BRK-A) outperforming the S&P 500 in total returns by about 84% over the past 20 years. If there’s one thing that’s made Buffett one of the most successful investors in history, it’s his commitment to his strategy. While several new investment techniques and algorithms have come and gone over the years, Buffett has maintained his fairly simple strategy of picking solid companies
Investors were responding to stellar results from the financial technology company and its rapidly growing consumer banking business. A banking charter isn't the only way this company has set itself up for long-term profitability.
The right dividend stocks can shower investors with reliable passive income. Picking companies that are well-established in thriving industries with track records of dividend growth is as close to a guarantee of future dividend growth as possible. Here are three quality dividend stocks that appear positioned to grow their dividends for many more years.
Nothing tests the patience of investors like the market sell-off we have witnessed this year. Bear markets are the ideal time to put money to work in great companies. Read why a team of Motley Fool contributors recently selected Starbucks (NASDAQ: SBUX), Target (NYSE: TGT), and Home Depot (NYSE: HD) as good places to park some money for the long haul.
After a couple years of underperforming the S&P 500, CEO Warren Buffett and Berkshire Hathaway have returned to crushing the market in 2022. The investment conglomerate's value-focused approach to portfolio composition and penchant for identifying sturdy businesses have helped its stock holdings significantly outperform the market at large. With the market outlook still looking turbulent, the Berkshire portfolio may be a good place to turn to for stock-picking inspiration, and dividend-paying companies in the cohort could be particularly well suited to generate returns in the current climate.
MARK HULBERT A gutsy contrarian bet right now is that the strong U.S. dollar will weaken, particularly versus the euro. A secondary bold bet is that U.S. stocks will lag international equities. Dollar weakness would represent a reversal of a trend dating back several years.
In times like this investors looking for safe income should look toward high-quality companies such as the Dividend Kings, which have all increased their dividends for over 50 consecutive years. Altria is a consumer staples giant. Altria also has a 10% ownership stake in global beer giant Anheuser-Busch Inbev , in addition to large stakes in Juul, a vaping products manufacturer and distributor, as well as cannabis company Cronos Group .
Every investor wants to see his stocks pay off – or he wouldn’t be in the markets. But finding the right investment, the ‘one’ that will bring profits, can sometimes be challenging, especially in today's market conditions. The two simplest courses of action an investor can take to ensure solid returns are based on common sense. The first is to buy low and sell high. That is, find a cheap stock with sound fundamentals and good prospects for growth – and buy in to take advantage of the growth pote
The worries about tech could peak as earnings season gets under way. Now is the time to take advantage of a few bargains.

source

Leave a Reply

Your email address will not be published.

Free Worldwide shipping

On all orders above $50

Easy 30 days returns

30 days money back guarantee

International Warranty

Offered in the country of usage

100% Secure Checkout

PayPal / MasterCard / Visa

×
preloader