High-Growth Tech Stock Looks Like a Steal

MU trades for less than 10x forward earnings and has consolidated in a bullish 'V'

   
High-Growth Tech Stock Looks Like a Steal

Micron Technology (MU) — This stock has been one of our best performers and continues to surpass my price targets. I recommended MU on March 25, 2013, near $10 with a target of $14.Since then, I have steadily increased my target, most recently to $32 on May 6. The stock hit a multiyear high of $34.85 on July 16.

Credit Suisse (CS) named Micron its top pick for 2014. And a recent update on Aug. 6 reiterated that opinion with a price target of $50.

Earnings are expected to jump to $3.21 per share this year, up from a loss of $0.18 in 2013. And 2015 estimates are for $3.47 per share, so this high-growth stock is currently selling at less than 10 times forward earnings.

Technically, MU consolidated in a bullish “V” after running from the low $20s in March to its July high. The bottom of the “V” rests on the stock’s intermediate trendline at $30, which is its support line.

A break through $34 would complete the “V” and target a move to the high $30s. Our trading objective is therefore $38-$40. However, long-term investors should buy MU at the market with a 12-month target of $50.

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chart key 300x84 High Growth Tech Stock Looks Like a Steal


Article printed from InvestorPlace Media, http://investorplace.com/2014/08/trade-day-micron-technology-mu-stock/.

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