Micron Technology (MU) is gearing up to release its fourth-quarter earnings on Wednesday, and investors are eager to see how the semiconductor giant performed. Wall Street analysts are expecting robust results, with an estimated $1.13 in earnings per share (EPS) and $7.64 billion in revenue. This comes after the stock experienced a remarkable surge, gaining 37% over the past year and 14% year-to-date (YTD).
While the positive stock performance is encouraging, a closer look at the technical indicators paints a more nuanced picture. Micron’s stock chart reveals a tug-of-war between bullish and bearish forces. The stock currently sits at $94, trading above its eight-day and 20-day simple moving averages (SMAs), suggesting short-term bullish sentiment. However, it remains below its 50-day and 200-day SMAs, indicating a longer-term bearish outlook.
Adding to the mixed signals, the Moving Average Convergence Divergence (MACD) indicator sits at a negative 2.65, reinforcing the bearish sentiment. On the other hand, the Relative Strength Index (RSI) at 50.17 suggests that Micron stock is trading in neutral territory, neither overbought nor oversold. The Bollinger Bands, spanning $80.21 to $106.49, further point to bearish momentum as the stock trades within the lower band.
Despite the mixed technical signals, analysts remain optimistic about Micron’s future. The consensus analyst rating on Micron stock stands at a Buy, with a price target of $146.04. Recent analyst ratings from TD Cowen, Stifel, and Wells Fargo, released in mid-September, project an average price target of $141.67, suggesting a substantial 50.12% upside potential.
Micron stock closed at $94 on Tuesday, up 0.46%. As the earnings announcement approaches, investors will be closely watching how Micron’s performance measures up to Wall Street expectations and how the technical indicators respond to the news.
