On Wednesday, Micron Technology (MU) got a positive adjustment to its Relative Strength (RS) Rating, from 64 to 71. Micron stock was up 1.7% in afternoon trading as techs tried to recover from a morning drubbing.
The 71 RS Rating means that Micron stock has outperformed 71% of all stocks, regardless of industry group, over the past year.
Micron Stock Surged 164% From Covid Crash Low
The Boise, Idaho-based memory-chip maker’s stock fell to a low of 31.13 in late March 2020 amid the coronavirus market crash. It’s more than doubled since then, and was trading at 82.32 Wednesday afternoon. Its memory chips are used in computers, network servers and a variety of consumer electronics.
Stocks that go on to make the biggest gains often have an RS Rating north of 80 in the early stages of their moves. See if Micron Technology can continue to rebound and clear that threshold.
Among other key ratings, Micron stock has a near-best 96 EPS Rating, reflecting strong recent and long-term profit growth. Its 85 Composite Rating puts it in the top 15% of stocks for a variety of key measures.
IBD’s Composite Rating combines five separate proprietary ratings of fundamental and technical performance into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Taking a look at revenue and profit performance, the company has posted rising EPS growth in each of the last two reports. Revenue gains have also moved higher during the same period. Last quarter, its EPS shot up 129% to $1.88 on a 36% jump in revenue to $7.42 billion.
However, there is a yellow caution flag on Micron stock, given that it has an E Accumulation/Distribution Rating, on an A+ to E scale with A+ tops. The E rating means large funds are actively selling its stock even though it’s posted double- and triple-digit quarterly revenue and profit growth for at least four straight quarters. Its outstanding numbers, though, make it a stock to watch.
Micron Technology holds the No. 4 rank among its peers in the Computer Software-Storage industry group. Smart Global Holdings (SGH) and Seagate Technology (STX) are also among the group’s highest-rated stocks.
Micron stock is working on a consolidation with a 97.06 entry. See if the stock can clear the breakout price in volume at least 40% above average.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
This exclusive rating from Investor’s Business Daily measures share price performance with a 1 (worst) to 99 (best) score. The score shows how a stock’s price behavior over the trailing 52 weeks compares to all the other stocks in our database.
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