Micron (MU) full-year income is projected to jump over 48% to reach $30. 3X. 30 per share, while its full-year earnings are expected to skyrocket 136%.
The firm’s capital expenditures have averaged about 26% of annual revenue over the last five years. Some are already reaching 265 kilometers on a single charge. Investors may note that much of these benefits come over the last 24 months, with MU stock up over 221%.
Much like petroleum 150 years ago, lithium battery power is defined to shake the creating millionaires, world and reshaping geo-politics.
With battery prices plummeting and charging stations set to multiply, revenues that were already at $31 billion in 2016 are expected to blast to over $67 billion by the end of 2022.
For example, MU rival Samsung almost doubled its capital expenditures last year. 3X average, the S&P’s 17. But this includes a ton of non-company specific turbulence and MU still easily tops its industry and the S&P’s roughly 10% climb.
Micron’s price performance picture becomes a little worse since the start of the year, with its shares up only 29%. MU also rocks “A” marks for both Value and Growth in our Style Scores system. Plus, the Chinese government is projected to continue to heavily support its own semiconductor industry. Plus, Micron hopes to lift its overall capital costs into the low 30s as a percentage of revenue on the long haul. This climb tops the likes of Amazon (AMZN) and nearly doubles Apple (AAPL). And it’s not the one you may think!“ These products support a diverse set of applications such as for example industrial automation, drones, the IoT (Internet of Things) and in-vehicle experience applications for automotive, ” CEO Sanjay Mehrotra said in a statement. In the other end of the income statement, the firm’s modified quarterly revenue are projected to soar over 63% to touch $3.
Despite Micron’s impressive stock price growth and recent strength, the company has lagged some of its biggest rivals in terms of investment. 22 billion, based on our current Zacks Consensus Estimate. You’ll Never Think It. Soon electric vehicles (EVs) might be cheaper than gas guzzlers.
Micron has also seen some positive revenue estimate revision activity over the last 30 days, and is currently a Zacks Rank # 3 ( Hold ). Plus, MU stock has slipped roughly 7% over the last three months, which helps its stock price sit roughly $10 below its $52-week highs, despite Thursday’s benefits.
Micron announced on Wednesday that it plans to invest a total of $3 billion at its Manassas, Virginia plant by 2030 in order to increase memory space production. One stock stands out as the easiest way to invest in the surge to electric cars. Better still, MU stock has traded as high as 6. “This business delivers strong profitability and stable, growing free cash flow.
Micron’s impressive top and bottom line growth projections, coupled with its new capital expenditure plans and great valuation picture, help show that now may be an excellent time to buy MU stock on a slight dip. 17 billion. 7X, and blows away fellow chip power Nvidia’s (NVDA) 37. In the mean time, Intel (INTC) – which has seen AMD (AMD) encroach on its territory as its next-generation chips experience more delays-expects its capex to hit a record this year. 1X, but MU still offers exceptional value and looks rather inexpensive compared to the overall semiconductor industry. And before investors get nervous that these investments will cut into Micron’s earnings, understand that making chips is very expensive and it will likely cost a lot more as chip sizes shrink further and further.
MU Price Movement
Shares of Micron soared over 233% during the last three years, which outpaces its industry’s 132% climb and crushes the S&P 500’s 48% jump.