Micron Technology
MU
Delayed Nasdaq - 09/21 10:00:03 pm
44.74USD
-2.87%

Good timing to go long again

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David Meurisse
Contributor / Partner

Strategy published on : 04/11/2018 | 16:29

long trade
Stop-loss triggered

Entry price : 51.4$
Target : 57.8$
Stop-loss : 48.5$
Potential : 12.45%

The selling pressure regarding Micron Technology shares could subside shortly. In fact, the support area that is currently being tested around 47.62 USD has come into play and could, at least in the short term, keep the downside pressure at bay.
Investors have an opportunity to buy the stock and target the $ 57.8.

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

● Share prices are approaching a strong support area in daily data, which offers good timing for investors.

● 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.

● The equity is one of the most attractive in the market with regard to earnings multiple-based valuation.

● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.

● Over the last twelve months, the sales forecast has been frequently revised upwards.

● For the past twelve months, EPS forecast has been revised upwards.

● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.

● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.

● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.

● The tendency within the weekly time frame is positive above the technical support level at 40.41 USD


Weaknesses

● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.

● The company is not the most generous with respect to shareholders' compensation.

Zonebourse.com 2018
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