Micron Tech (MU) reported its fiscal Q3 earnings results alongside a forecast for the final quarter of the fiscal year, and shares slid 6% as investors were expecting more.

Revenue came in at $6.81 billion for the quarter, which was a whopping 81% improvement year over year. Analysts were expecting $6.61 billion. 

Meanwhile, earnings per share of 62 cents were ahead of the 51 cents expected, too. The company’s profitability took a massive step forward over the past year, as it reported $332 million in net income compared to a net loss of $1.9 billion this time last year.

Unfortunately, though, the tangible improvements weren’t what the market focused on. A lackluster forecast for the current quarter took the spotlight.

The chipmaker is aiming for revenue of $7.6 billion with a $200 million cushion one way or the other. This is right in line with what analysts are expecting – but it’s not enough. 

In fact, senior analyst with Swissquote Bank Ipek Ozkardeskaya himself said that the stock’s price has essentially tripled in the past year and a half – so anything less than fantastic isn’t going to cut it. In other words, expectations are as inflated as the stock itself.

Micron isn’t the only company with the weight of the world on its shoulders. Nvidia, Broadcom, Intel, and other AI pioneers are all looked at with the same scrutiny.

The chipmaker has sold out its high-bandwidth memory (HBM) chips all the way through 2025. And yet, the stock has lost about $10 billion in market share after today’s pullback.

That being said, the VectorVest stock analysis software revealed 3 reasons you should tune out the noise with MU and buy this stock today. Here’s what you need to know…

MU Still Has Good Upside Potential and Timing With Very Good Safety

VectorVest is a proprietary stock rating system that takes complex technical data and fundamental insights and distills them into 3 simple ratings, giving you all the insights you need to make clear, calculated, emotionless decisions.

Micron Tech Tumbles 6% on Less Than Fantastic Forecast: 3 Reasons It’s STILL Time to Buy MU

These are relative value (RV), relative safety (RS), and relative timing (RT). Each sits on a scale of 0.00-2.00 with 1.00 being the average, which makes interpretation quick and easy. 

It gets even better, though. You’re given a buy, sell, or hold recommendation for any given stock at any given time based on its overall VST rating. As for MU, here’s what we’ve uncovered:

  • Good Upside Potential: The RV rating compares a stock’s long-term price appreciation potential (forecasted 3 years out), AAA corporate bond rates, and risk. This is a much better indicator than the typical comparison of price to value alone. MU has a good RV rating of 1.15 right now.
  • Very Good Safety: The RS rating is a risk indicator calculated from an analysis of the company’s financial consistency & predictability, debt-to-equity ratio, business longevity, sales volume, price volatility, and other factors. MU has a very good RS rating of 1.29.
  • Good Timing: The RT rating is based on the direction, dynamics, and magnitude of the stock’s price movement. It’s computed day over day, week over week, quarter over quarter, and year over year. MU has a good RT rating of 1.17, even after today’s slip.

The overall VST rating of 1.21 is good for MU, and enough to earn the stock a buy - you can pick up shares of a great company for 6% cheaper thanks to negative market sentiment! 

But before you do anything else, take a deeper look at this opportunity so you can fully capitalize. We’ve put together a free stock analysis to help you make your next move with confidence.

Micron Reports Earnings: Buy the Dip?

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Use VectorVest to analyze any stock free. VectorVest is the only stock analysis tool and portfolio management system that analyzes, ranks and graphs over 18,000 stocks each day for value, safety, and timing and gives a clear buy, sell or hold rating on every stock, every day.

VectorVest advocates buying safe, undervalued stocks, rising in price. MU has fallen 6% even after delivering an impressive quarter on both the top and bottom lines. The market focused on a “weak” forecast instead. Still, the stock itself has good upside potential and timing with very good safety.

Before you invest, check VectorVest! Click here to ANALYZE ANY STOCK FREE and see our system in action!

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