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Micron rebounds from a recent string of beatings. |
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Released on Monday, February 13th, 2012, 6:55 PM EDT
Pittsburgh, PA (SpeculatingStocks) - Micron Technology, Inc. (NASDAQ:MU)—has had a fairly interesting trading day. After an early market hit, the stock has largely resurfaced today to suffer only a 0.70% loss. The recent turbidity in the stock can be attributed to a recent decrease in the price of semi-conductor and requirements of DRAM production materials: the field Micron makes most of its products in.
The CEO of the company said that he felt the price of the market has finally bottomed out, which is good news for Micron and others in the DRAM industry. With increasing prices the company can look forward to increasing sales once again. In fact, nearly all of the unfavorable variance associated with MU's recent earnings report can be attributed to the decrease in prices in the sector.
Analyst far and wide have issued outperform ratings on MU, and we are in concurrence with those ratings. With a current ratio of 2.35, positive returns on assets and equity at around 2.36% and 2.03% respectively, and with potential positive earnings in the future, the company could be a nice buy. At current the 1-year target estimate for the stock is $8.39 per share, presenting a massive return over a current price of $7.86 per share (3:29 PM EDT, February 13th, 2012). A daily high range of $8.02 per share and a 52-week high of $11.95; MU could have a lot of ground to cover before it tops out.
Holding a total market capitalization of around $7.77 billion, this is a small to mid-cap ranged stock, so remember volatility is high; in fact, MU carries a beta of 1.9, so it will generally move about double the market on any given day.
In the very near future the stock price could carry itself up, and it might be a great place to put your money, especially if the new highs of the market prove to be sustainable. We've mentioned Micron in the past, and the stock's price has increased since--we still like it, see what you think.
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