As more and more people take their work home to comply with social distancing measures and quarantine protocols, the demand for cloud-based applications and other similar technologies could fuel Micron’s sales and profits in the near future.
With this in mind and based on Micron share price history and the opinion of many analysts, the stock’s recent coronavirus-related sell-off may be a great opportunity to enter a position at an advantageous price level.
Micron share price history (YTD)
The MU stock price history graph shows that the company had a good start in 2020 after it unveiled its Q1 2020 results on 18 December.
This report has been the major influence in MU’s stock price performance throughout the first months of this year as the company beat analysts’ targets that forecasted a quarterly EPS of $0.47 and revenues of $5.01 billion.
In fact, Micron stock history shows that the shares reached a one-year peak on 19 February when they closed the session at nearly $60 per share, which indicated how much the market favoured these positive results, even though the company continues to show negative growth on a year-on-year basis.
Sadly, the stock’s positive performance has been impacted by the widespread sell-off caused by the coronavirus, which has sent the price down to a point that’s near its one-year bottom.
Right now, the stock is trading at $35, which results in a 42 per cent loss compared to its one-year peak.
Trade Micron Technology, Inc. - MU CFD
Micron (MU) stock outlook
Micron Technology (MU) shares are traded on the NASDAQ exchange and the company is currently valued at nearly $41 billion.
Additionally, these are some of the most important stock market metrics for Micron Technology (MU):
- 1-Year Return: -6.35 per cent
- P/E Ratio: 10.02
- Price-to-Book: 1.15
- Price-to-Sales: 2.02
- Dividend: No dividend
Micron Technology shares are trading at around $35, which is the closest the stocks have gotten to their 52-week bottom of $32.14. Additionally, the stock has accumulated a YTD loss of -30.49 per cent and they are currently trading at a level that’s 42 per cent lower than their 52-week high of $61.19.
Furthermore, Micron stock history shows that the shares have also generated losses for one-month (-35.27 per cent), three-month (-29.47 per cent), and one-year (-7.41 per cent) holding periods, even though analysts seem to agree that this is a temporary setback for an otherwise bullish stock.
In fact, analysts surveyed by Yahoo Finance are predicting a 12-month average price of $67.65 for Micron Technology shares, which would result in a 90.3 per cent one-year return if the shares are bought at their current level.
The MU stock price historical chart (YTD) shows how the stock has been progressively increasing in value since it touched a bottom in the middle of 2019 due to concerns related to the US-China trade war and its potential impact on the company’s sales.
Nevertheless, the stock recovered in July 2019 after the company reported positive quarterly results (Q3 2019) that beat analyst’s estimates and brought certain stability to the value of Micron Technology shares.
Micron stock price history chart
Before the coronavirus, the stock was on a hike as positive results from trade negotiations between the two countries brought some hope to investors. Additionally, Q1 2020 results in December also created some momentum, as the stock surged 9.5 per cent in less than 10 days after the results were posted.
By 19 February, the stock had accumulated a 8.3 per cent gain, followed by a sharp drop triggered by the coronavirus widespread sell-off that has sent stock markets throughout the world in an unstoppable downward spiral.
Micron most recent stock news
Micron is set to report its Q2 2020 results on 25 March and analysts surveyed by the Wall Street Journal are expecting an EPS of $0.37 which would represent a 77 per cent decline compared to the same period in 2019. Additionally, revenue targets for this upcoming quarter range from $4.69 to $4.88 billion, which would result in an 19 per cent decrease YoY.
Micron Technology has not yet commented on the potential impact that the virus may have on its operations and sales, considering the company is significantly exposed to it as it has facilities in Taiwan, Singapore, Japan, China, and Malaysia.
MU Stock: Buy or Sell?
Based on the assessment of 27 analysts surveyed by the Wall Street Journal, Micron shares appear to be rated as a “buy” as investors expect that the temporary nature of the coronavirus sell-off combined with a potential resolution of the apparently-paused US-China trade war could fuel the company’s performance over the next 12 months.
Additionally, analysts surveyed by Yahoo Finance seem to agree with this view and even 20 per cent of them are going one step further in recommending the purchase of Micron Technology shares by rating the stock as a “strong buy”.
This consensus towards the potentially bright future of a company that has faced a few short-term setbacks appears to indicate that Micron Technology shares are a bargain at their current levels and investors should seriously consider this information as evidence that now is a good time to step in.
Micron Technology stock price history showed a progressive upward trend before the coronavirus stepped in to trigger this unprecedented widespread sell-off.
The upcoming Q2 2020 earnings call could provide further evidence that Micron is a potentially profitable investment if the company manages to beat analysts’ estimates one more time. And while it is hard to say that the stock will recover some of its lost territory during the following days, this achievement would strengthen the notion that the fundamentals backing the investment are good enough to justify taking a position.
Analysts seem to agree that Micron is currently a bargain and a considerable portion of them have even rated the stock as a “strong buy”. Additionally, it is important to note that Micron’s Balance Sheet appears to be sound enough to keep the company in safe territory during a potential short-term drop in global demand, considering that its FY 2019 financials showed a LTD-to-Assets ratio of 9.3 per cent and a current ratio of 2.6. Keep track of the latest Micron news and trade MU shares with CFDs at Capital.com.