by Sam Collins | March 25, 2013 1:09 am
Micron Technology (NASDAQ:MU) — This producer of semiconductor NAND, DRAM and NOR flash memory and image sensors has faced stiff competition that has led to losses. However, on Friday, the company reported a startling increase in fiscal Q2 revenue and margins that were significantly higher than analysts’ estimates. This was mostly due to a 40% jump in revenue from solid-state drives. Furthermore, the company expects another “double-digit percentage increase this quarter.”
Both JPMorgan Chase (NYSE:JPM) and Credit Suisse (NYSE:CS) have upgraded the stock. Credit Suisse increased its target price from $8 to $14 and expects MU to produce a profit of $0.64 in fiscal year 2014, ended in August, versus a consensus estimated loss of $0.48 in fiscal year 2013.
In mid-January, the stock executed a bullish golden cross when its 50-day moving average crossed above its 200-day moving average. And in February, it overcame resistance at $7.75-$9 formed early last year.
Friday’s breakaway gap and MACD buy signal confirmed the validity of the break above $9. And with momentum high, this stock should eventually meet analysts’ target of $14. However, this is a very volatile stock, so a buy under price of $10.50 is suggested.
Source URL: http://investorplace.com/2013/03/trade-of-the-day-micron-technology-nasdaq-mu-3/
Short URL: http://invstplc.com/1fsOgNU
Copyright ©2016 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.