Micron Technology
MU
Delayed Nasdaq - 10/20 10:00:00 pm
41.5USD
+0.46%

Volatility should make a big comeback

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David Meurisse
Contributor / Partner

Strategy published on : 07/17/2017 | 14:31

long trade
Stop-loss triggered

Entry price : 31.67$
Target : 33.9$
Stop-loss : 30.7$
Potential : 7.04%

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

● Growth progress expectations are rather promising. Indeed, sales are expected to rise sharply in the coming years.

● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.

● The company is in a robust financial situation considering its net cash and margin position.

● Historically, the company has been releasing figures that are above expectations.

● Its low valuation, with P/E ratio at 7.89 and 5.65 for the ongoing fiscal year and 2018 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 past year, analysts have regularly revised upwards their sales forecast for the company.

● 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 23.24 USD


Weaknesses

● Technically, the stock approaches a strong medium-term resistance at USD 32.5.

● 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.

Zonebourse.com 2017
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