Micron Technology (MU): Is This Stock Better Than NVDA?

In general, I veer away from adding large cap stocks to the Zen Investor portfolio. 

That’s because I am looking for serious growth that leads to a doubling of shares. That is much more common in small and mid cap companies.  

However, I could not overlook that Micron Technology (MU) is also enjoying robust growth thanks to the AI revolution. Just in this case we can buy shares for a fraction of the valuation lavished on peers like NVDA.

So even though the company is set to enjoy greater than 100% year over year earnings growth it only trades for 14X this year’s earnings. Let’s compare that to NVDA at not even 60% earnings growth this past year yet trading at a much steeper PE of 38.

MU enjoys an impressive Zen Rating of A putting it in the top 5% of all stocks analyzed by our coveted model. What really stands out are these fundamental virtues:

Top 20% Growth

Top 14% Financials

Top 11% Sentiment

Top 7% Value

Top 4% Momentum

This proves that the company is chock full of fundamental goodness that greatly increases the odds that they stay on their beat and raise path to higher highs. And yes, there are many top Wall Street analysts seeing the same thing.

Most notable of which is Joseph Moore of Morgan Stanley (top 2% of all analysts based on performance) who last week increased his price target to a street high $338 (40% above the current level).

This is interesting on two fronts. He already had a street high of $325 on shares. Yet while checking his notes going into their mid December earnings report he sees robust demand...higher profits...and a soaring share price.

Yes, it is sometimes risky buying just before an earnings report. Yet the academic research clearly shows that positive analyst action in the weeks leading up to the report is strong foreshadowing of what is to come. 

In this case there are a total of 7 Wall Street analysts who raised their estimates for Micron in the past week. CLEARLY they are seeing great reasons for growth in the current quarter and the quarters ahead. 

There is nothing semi about this thriving semiconductor stock. So let’s load up ahead of their 12/17 earnings report given the tremendous tip off we just received from Wall Street of more good times ahead. 

What To Do Next?

Micron Technology (MU) is just one of 20 stellar stocks found in my Zen Investor portfolio.

Each stock was selected by harnessing the power of the Zen Ratings along with my 45 years of successful investing experience. 

This dynamic combination has us pinpointing stocks with the unique opportunity to double or more in the next 1-2 years. 

If that appeals to you, then please click below to learn more about my investment process…and how to see my current top 20 stock recommendations. 

Discover the Zen Investor portfolio & Top 20 Stocks Now > 

Wishing you a world of investment success!

Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)

Editor of the Zen Investor

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