MU - Micron: All Positives Are Priced In Before Earnings

2024-06-24 06:35:56 ET

Summary

• Micron stock rallied 93% since last November due to the company's impressive renaissance after facing a bit of geopolitical headwinds during the 2022-2023 fiscal years.
• My analysis suggests that the company is poised to deliver strong quarterly earnings on June 26 with likely positive forward-looking comments from the management.
• My valuation analysis indicates that all positives are likely priced in, as MU stock is slightly overvalued.

Investment thesis

I was completely wrong with my "Hold" rating for Micron ( MU ) last November because the stock gained 93% since then. The company demonstrated revenue and profitability recovery dynamic much better than expected, and that was the big catalyst for the stock to rally....

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