Semiconductor giant Micron Technology Inc. will report Q2 earnings after What are value stocks? A value company is a company that app... More close on Wednesday.
Why is it important?
According to the consensus forecast, earnings per share will account for $1.68 (-40.4% Y/Y), while the revenue will equal $5.84 billion (-20.5% Y/Y). As you can see, the financial results are expected to be rather poor. The company itself made weak guidance for the second quarter.
For What are value stocks? A value company is a company that app... More
There is sense to look into this stock for one important reason: it has the P/E ratio of just 3.20, which is quite cheap. At the same time, it’s natural that Micron is trading this way. So far, the company has been facing a In forex trading, a lot is the standard unit to measure the... More of problems including falling prices of memory chips and the declining demand for smartphones. In addition, the demand for data centers is slowing down, especially in The People's Republic of China (中华人民共和国 in s... More. Finally, as the What is interest? In finance and trading, interest is a fe... More in cryptocurrency subsided, the demand for graphics cards went down. All of this means that Micron has troubles with customers.
There are forecasts that the situation with memory chips will improve in the second half of the year. However, for now, that is merely a hope without substantial grounds. As a result, despite the fact that the stock looks cheap, we see the risk of its further depreciation.
The stock found What are "support levels" in trading? A support level is a... More at $36.55 at the beginning of March. The overall picture on large timeframes looks like the What are value stocks? A value company is a company that app... More is trying to base. The nearest support is at $38.60 (50-day MA). Positive All public companies periodically release an earnings repo... More will send Micron stock to February high and the 200-day MA in the $44.00 area. On the other hand, a bad report and a decline below $38.00 can make the What is price? The price is the measure of the value of good... More reverse down and take the 200-week MA in the $29.50 area for a target as the market embraces the gloomy situation.