There has been very little movement in Micron Technology's share price. This situation is bound to change. An exit on the upside out of the current trading range should go with a comeback in volatility. Therefore, the timing for new long positions seems good.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
Strengths
● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● Historically, the company has been releasing figures that are above expectations.
● Its low valuation, with P/E ratio at 6.08 and 6.9 for the ongoing fiscal year and 2019 respectively, makes the stock pretty attractive with regard to earnings multiples.
● Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● For several months, analysts have been revising their EPS estimates roughly upwards.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
● The stock is in a well-established, long-term rising trend above the technical support level at 30.29 USD
Weaknesses
● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.
● Technically, the stock approaches a strong medium-term resistance at USD 45.8.
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
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Micron Technology, Inc. specializes in the design, manufacturing and marketing of semiconductors. The group's products include memory products (dynamic memories, flash memories, etc.) and semiconductor systems. Net sales break down by market as follows:
- IT infrastructure (36.7%): computers, network systems, graphics systems and cloud servers;
- phones and mobile devices (23.4%): smartphones, tablets and mobile devices;
- storage media (16.4%): mainly fixed and removable data storage components;
- other (23.5%): primarily automotive, connected home and consumer electronics and industries markets.
As of 31/08/2023, the group has 11 manufacturing sites worldwide.
Net sales are distributed geographically as follows: the United States (50.2%), Taiwan (17.4%), China (14%), Japan (6.4%), Hong Kong (2.1%), Asia/Pacific (4.8%), Europe (4.4%) and other (0.7%).