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This Tech Stock Looks Set for Long-Term Growth

August 29, 2014 | About:
jaggom

jaggom

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Micron Technology (MU) has been profiting from enhancing trends in the memory industry. The organization's performance has been striking, and its share cost has acknowledged pleasantly over the past few years. In addition, looking ahead, investors should keep having confidence in Micron, as it looks decently positioned to convey development over the long haul. How about we see how?

Enhancing end-markets

The figuring and systems administration business of Micron witnessed a robust second from last quarter portrayed by enhancing interest and positive evaluating. The PC business seems to be positive in comparison to previous industry forecasts with constrained supply. A finer-than-anticipated sector performance is because of an increase sought after on desktops and notebooks. There's also an increasing interest for server DRAM. There's robust interest for Micron's organizing products principally determined by the LTE rollout in China and other developing markets.

The graphics business of Micron also recorded strong shipments and revenue in the quarter, principally determined by strong sales of Gddr5 products through PEM infiltration in both PC and console gaming. Micron continues to drive development in technology with products such as Ddr4 for servers and elite desktop applications, doorway of Gddr5 into superior gaming PCs and workstation graphics; and with the dispatch of Hybrid Memory Cube for superior solutions in systems administration and registering.

The U.S. chipmaker continues to focus on its mobile business for producing greatest returns as against towards piece of the pie development just.

The auto segment is profiting from memory content development controlled by both infotainment and progressed driver assistance systems. Micron's dedication to the novel needs of this business sector in areas such as quality, dependability, item life span and service has permitted it to keep up the most obvious position in the business sector.

Tailwinds ahead

The industrial and multi-market class witnessed robust twofold digit development quarter-over-quarter in part determined by the coordination of network and rising machine-to-machine usage with industrial applications. The joined home segment for Micron also saw strong performance across all its item categories. There's also robust sales development in emmc for installed applications.

The sensational advancement of Micron's business to more systems and subsystem-level solutions is foreseen to keep on being an increasing piece of the new memory standard. Micron continues to invest in its test assembly and supply affix capabilities to support a growing set of customer requirements with its business continuously venturing into diversified end markets such as enterprise, systems administration, mobile, auto and gaming.

Additionally, Micron is getting a charge out of the benefits of a lot of people new applications for its chips past its unique franchise in personal computers. It as of now provides technology for smartphones, server systems and cars.

Valuation

As per Yahoo Finance, the trailing P/E and forward P/E ratios of 12.63 and 9.50 respectively depicts change in the organization's operations and brought down costs. In addition, the P/E proportion is far superior than the industry's normal of 17.05. The PEG proportion of 0.51 is superior to the industry's normal of 0.53 and is impressive plus it represents robust development. The profit margin of 21.34% is eye-catching.

The revenue per share and weakened EPS of 12.79 and 2.48, respectively, reflect promising returns for investors. Further, the earnings per share is in front of the industry's normal. The quarterly revenue development of 97.60% is outstanding and path over the industry's normal of 0.00%. The current proportion of 1.88 signifies robust current assets of Micron. In general, investors are advised to invest into the organization stock provided for its strengths and an impressive CAGR of 19.53% for the following 5 years per annum, over the industry's normal of 15.72%, and expect promising long haul returns.


Rating: 3.0/5 (2 votes)

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Comments

vdecarlo2
Vdecarlo2 - 1 month ago

MU seems to only have Sandisk as a major competitor, and maybe HyJinx as it catches up. Knowing that Sandisk's chips are mainly produced for their own equipment and MU having increased it's customer base, Hyjinx basically has had to start from scratch. Fairweather MU investors are confused and fearing some disappointing news. Figure it's a great time to add another 5% to the portfolio. VicTech

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