Micron Technology Inc. (NASDAQ:MU) stock rose nearly 1% in Thursday’s premarket trading as investors focused on the memory chipmaker’s longer-term uptrend. Nasdaq futures gained 0.09%, while S&P 500 futures slipped 0.03%.
Micron Stock Attempts To Extend Its Uptrend
With no clear company-specific catalyst Thursday, Micron’s early gain appears driven by positioning around key technical levels. Buyers have continued to defend the stock after its recent pullback.
Micron remains in a strong long-term uptrend. The stock is trading 67.6% above its 200-day simple moving average of $563.69 and 18.7% above its 100-day SMA of $795.78.
However, Micron remains 1.9% below its 50-day SMA of $962.32. That suggests the stock is still consolidating after its strong run.
The relative strength index stands at 51.90. The reading signals neutral momentum and suggests the stock is neither overbought nor oversold.
Micron’s 20-day SMA of $894.74 remains below its 50-day SMA. However, the 50-day average remains well above the 200-day SMA, supporting the longer-term bullish trend.
Traders could watch $1,012 as a potential resistance level. Meanwhile, support sits near $891.50, close to the 20-day moving average.
Micron Earnings And Analyst Outlook
Micron’s next major catalyst could come from its estimated Sept. 22 earnings report. Analysts expect earnings of $31.27 per share on revenue of $50.81 billion. That compares with earnings of $3.03 per share and revenue of $11.31 billion a year earlier.
The stock carries a Buy rating with an average price forecast of $1,537.50.
Citigroup maintained a Buy rating on Aug. 7 but lowered its price forecast to $1,150. KeyBanc raised its price forecast to $1,750 while maintaining an Overweight rating on July 14. Cantor Fitzgerald maintained an Overweight rating and raised its price forecast to $2,000 on June 29.
Micron trades at a price-to-earnings ratio of 21.2.
Benzinga Edge: Micron Scores High On Momentum
Micron also ranks strongly across several Benzinga Edge metrics. The stock scores 99.62 for momentum, 97.41 for quality and 92.89 for growth. Its value score stands at 31.38.
The scores point to strong momentum, growth and quality. However, the lower value score suggests the stock does not screen as a bargain after its sharp rally.
ETFs With Micron Exposure
Micron has an 8.91% weighting in the Invesco PHLX Semiconductor ETF (NASDAQ:SOXQ). It also accounts for 8.14% of the State Street SPDR NYSE Technology ETF (NYSE:XNTK) and 8.71% of the Invesco AI and Next Gen Software ETF (NYSE:IGPT).
Large fund flows into or out of these ETFs could therefore influence demand for Micron shares.
MU Price Action
MU Price Action: Micron Technology shares rose 0.84% to $945 in Thursday’s premarket trading, according to Benzinga Pro data.
Photo via Shutterstock
Login to comment