Micron Stock Just Hit New All-Time Highs Amid 15%+ Rally. More Gains Are Likely Ahead.

• Micron Technology (MU) demonstrates exceptional growth, robust profitability, and strong technical momentum.
• Shares are trading at new all-time highs.
• MU’s fundamentals are compelling with 193% projected revenue growth and 603% projected earnings growth this year.
• The stock is up nearly 700% over the past year. 

Today’s Featured Stock

Valued at $847 billion, Micron Technology (MU) manufactures and markets high-performance memory and storage technologies including Dynamic Random Access Memory (DRAM), NAND flash memory, NOR Flash, 3D XPoint memory, and other technologies. Its solutions are used in leading-edge computing, consumer, networking, and mobile products. 

The last time I covered Micron, shares were trading at just $239. Today, it hit a new all-time high of $876.66. That’s a nearly 270% increase! 

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. MU checks those boxes. The Trend Seeker issued a new “Buy” signal on April 22. Since then, the stock has gained 81.97%.

Barchart Technical Indicators for Micron Technology

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Micron Tech scored an all-time high of $879.51 on May 26.

• Micron has a Weighted Alpha of +762.40.
• MU has a 100% “Buy” opinion from Barchart.
• The stock has gained 838.73% over the past 52 weeks.
• Micron has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $879.51 with a 50-day moving average of $528.08.
• MU has made 10 new highs and gained 76.46% over the past month.
• Relative Strength Index (RSI) is at 73.99.
• There’s a technical support level around $738.73.

Don’t Forget the Fundamentals

• $847 billion market capitalization.
• 35.81x trailing price-earnings ratio.
• 0.07% dividend yield.
• Analysts project revenue to grow 193.48% this year and another 57.48% next year.
• Earnings are estimated to increase 603.15% this year and an additional 76.25% next year.

Analyst and Investor Sentiment on Micron Technology

• The Wall Street analysts followed by Barchart give the stock 31 “Strong Buy,” 5 “Moderate Buy” and 5 “Hold” opinions with price targets between $249 and $1,100. This is an extremely wide range.
• Value Line ranks the stock “Highest” with price targets from $390 to $1,176 – also an extremely wide range.
• CFRA’s MarketScope rates the stock a “Strong Buy” with a price target of $900.
• Morningstar thinks the stock is 65% overvalued with a fair value of $455.
• 382,830 investors are following the stock on Seeking Alpha, which rates it a “Strong Buy” and rates it the best semiconductor stock.
• Short interest is 3.31% of the float with 1.03 days to cover the float.

The Bottom Line on Micron Technology

The company exhibits outstanding growth, superior profitability, strong stock momentum, and encouraging earnings revisions. While the valuation is somewhat stretched, these positive factors significantly outweigh the negatives.

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.