The major stock market indexes have experienced steep losses lately owing to investors’ rotating away from technology stocks amid rising bond yields. In addition, the ongoing supply chain disruptions and the rising oil prices are stretching the inflationary environment even further. Moreover…
Treasury Secretary Janet Yellen told CNBC that she believes the economy would fall into a recession if the U.S. government fails to address the borrowing limit before an unprecedented default on the debt.
However, promising data for Merck & Co., Inc.’s (MRK) oral COVID-19 treatment has provided some support to the market in addition to expectations of another strong earnings season. In August, Federal Reserve Chairman Jerome Powell indicated that “rate hikes aren’t imminent,” Moreover, according to a Factset report, more S&P 500 companies have issued positive EPS guidance for the third quarter.
So, it could be wise to scoop up shares of Micron Technology, Inc. (MU – Get Rating), Foot Locker, Inc. (FL – Get Rating), Nu Skin Enterprises, Inc. (NUS – Get Rating), and MRC Global Inc. (MRC – Get Rating). Wall Street analysts expect these stocks to rally more than 35% in the near term.
MU designs, manufactures, and sells memory and storage products worldwide. The company operates through four segments: Compute and Networking Business Unit; Mobile Business Unit; Storage Business Unit; and Embedded Business Unit. It offers DRAM, NAND, NOR, 3D XPoint memory under the Micron and Crucial brands and private labels.
On July 29, 2021, MU announced that it had begun volume shipments of the world’s first 176-layer NAND Universal Flash Storage 3.1 mobile solution. Raj Talluri, senior vice president and general manager of Mu’s Mobile Business Unit, said, “Our breakthrough 176-layer NAND supercharges smartphones with unparalleled performance, delivering rich multimedia content to consumers’ fingertips in a flash.”
MU’s net sales surged 36.6% year-over-year to $8.27 billion in the fiscal fourth quarter ended September 2, 2021. The company’s non-GAAP operating income grew 136% year-over-year to $3.07 billion, while its non-GAAP net income came in at $2.78 billion, representing a 126% year-over-year increase. Also, its non-GAAP EPS came in at $2.42, up 124.1% year-over-year.
MU’s EPS is expected to come in at $2.11 for the quarter ending November 30, 2021, representing a 170.5% year-over-year increase. In addition, it surpassed the consensus EPS estimates in each of the trailing four quarters. Also, the company’s revenue is expected to increase 15.8% year-over-year to $37.08 billion in fiscal 2023.
Over the past year, the stock has gained 51.7% to close yesterday’s trading session at $70.62. Wall Street analysts expect the stock to hit $100.95 in the near term, which indicates a potential upside of 42.9%.
MU’s POWR Ratings reflect this promising outlook. The company has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its weighting.
The stock has an A grade for Value, and a B grade for Growth, Momentum, and Quality. Within the B-rated Semiconductor & Wireless Chip industry, MU is ranked #33 of 96 stocks. To see MU’s ratings for Momentum and Sentiment as well, click here.
FL operates as an athletic footwear and apparel retailer. The company retails athletic footwear, apparel, accessories, equipment, and team licensed merchandise under the Foot Locker, Lady Foot Locker, Kids Foot Locker, Champs Sports, Eastbay, Footaction, Runners Point, and Sidestep brand names.
On September 20, 2021, FL announced that it had completed its acquisition of Eurostar, Inc. Richard A. Johnson, Chairman and CEO of FL, said, “WSS brings an expanded and differentiated customer base rooted in the rapidly growing Hispanic community, diversifies and enhances our product mix, and strengthens our footprint with a 100% off-mall store fleet located in key markets.”
FL’s net sales surged 9.5% year-over-year to $2.27 billion in the fiscal second quarter ended July 31, 2021. The company’s total assets grew 9.7% sequentially to $7.58 billion. Its adjusted net income came in at $233 million, representing a 210.7% year-over-year increase. Also, its adjusted EPS came in at $2.21, up 211.3% year-over-year.
For fiscal 2022, analysts expect FL’s EPS and revenue to increase 155.5% and 17.7% year-over-year to $7.18 and $8.88 billion, respectively. In addition, it surpassed Street EPS estimates in each of the trailing four quarters.
The stock has gained 30.8% over the past year to close yesterday’s trading session at $46.59. Wall Street analysts expect the stock to hit…
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