Chipmaker Micron Technologies (MU) announced stronger than expected guidance on Tuesday morning, amidst chatter about escalating market volatility.
Micron (MU) Up 8 Percent On Improved Business Outlook
For Q2 of this year, the semiconductor maker increased its estimate for total revenue to be in the range of $7.2 to 7.35 billion, up from its previous estimate of $6.8 to 7.2 billion. It also increased earnings per share to a range of $2.70 to $2.75 from $2.51 to $2.65.
In response, KeyBanc upgraded MU to overweight, noting that “valuation and long-term trends are too compelling to ignore.”
Our analysis is for the stock to move higher later in 2018. Given its market cycles, we expect the MU to correct into April.
The market cycles on the charts below are designated by the semicircles at the bottom of the chart.
MU Stock Chart (Weekly Bars)
Visit our site for more on our approach to using market cycles to analyze stocks.
Twitter: @askslim
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
