Micron Technology
MU
Real-time BATS EXCHANGE - 08/17 08:59:47 pm
47.32USD
+1.05%

Underpinned by a support level

Envoyer par e-mail
David Meurisse
Contributor / Partner

Strategy published on : 12/05/2017 | 16:01

long trade
Stop-loss triggered

Entry price : 41.51$
Target : 49.7$
Stop-loss : 38.7$
Potential : 19.73%

Micron Technology shares are closing back in on major support levels around 36.49 USD based on daily price data, which could offer attractive entry points.
Investors have an opportunity to buy the stock and target the $ 49.7.

Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.

● In a short-term perspective, the company has interesting fundamentals.


Strengths

● The close medium term support offers good timing for purchasing the stock.

● The group's activity appears highly profitable thanks to its outperforming net margins.

● Thanks to a sound financial situation, the firm has significant leeway for investment.

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

● Its low valuation, with P/E ratio at 5.35 and 6.07 for the ongoing fiscal year and 2019 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 the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.

● 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 difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.

● The stock is in a well-established, long-term rising trend above the technical support level at 32.45 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 firm pays small or no dividend to shareholders. For that reason, it is not a yield company.

Zonebourse.com 2018
Envoyer par e-mail