#2 - Micron Technology (NASDAQ:MU)
Micron Technology (NASDAQ: MU) - Technology stocks, like Micron Technology, can frequently be defended from a buy-and-hold perspective. However, Micron is one of many semiconductor businesses that have seen the second half of 2018 be an unmitigated disaster. Shares of Micron have are down 19% since September and that was after it had lost 40% over the summer. To be fair, Micron is certainly not alone. 32 out of 44 semiconductor companies with market caps over $2 billion are down at least 10% over the last three months. And about a quarter of those are down over 20%. Semiconductors may be a very attractive business, but the sector is notoriously cyclical, and right now that cycle is getting slaughtered. One of the reasons for this is the growing belief that the economy is heading towards a recession - if not in 2019, then in 2020 or 2021. The news isn’t all bad. Micron recently implemented a stock repurchase plan which should allow them to post higher earnings per share (EPS) in their 2019 first-quarter earnings report, and some analysts are showing the stock as having a high upside in the next two years. However, now seems like the time when sitting on the sidelines and waiting might be better than trying to catch the knife while it’s falling.
About Micron Technology
Micron Technology, Inc designs, develops, manufactures, and sells memory and storage products worldwide. The company operates through four segments: Compute and Networking Business Unit, Mobile Business Unit, Embedded Business Unit, and Storage Business Unit. It provides memory and storage technologies comprising dynamic random access memory semiconductor devices with low latency that provide high-speed data retrieval; non-volatile and re-writeable semiconductor storage devices; and non-volatile re-writable semiconductor memory devices that provide fast read speeds under the Micron and Crucial brands, as well as through private labels.
Read More - Current Price
- $111.58
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 24 Buy Ratings, 1 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $122.20 (9.5% Upside)
