Following Strong Earnings Release, Micron Technology Stock Looks Set To Extend Its Rally

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Micron Technology Stock (NASDAQ:MU) is up 11% in just one month (21 trading days), outperforming the S&P 500 which was down just under 4%. If we look at the changes in the last five and ten days, the stock has given returns of 13% and 9.5% on both the occasions, beating the market. Micron reported stellar Q1 ’22 earnings early last week (Micron’s fiscal year ends in August), with revenue jumping from $5.78 billion in Q1 ’21 to $7.69 billion in Q1 ’22. Gross margin increased from 30.1% to 46.4% and operating margin jumped more than 2x from 15% to 34.2%. This helped drive EPS up nearly 3-fold over the period, from $0.71 in Q1 ’21 to $2.04 in Q1 ’22. The sharp increase was clearly a response to this strong earnings release.

Now, is Micron stock ready to continue its rally or can we expect a pullback? We believe Micron stock has a strong 65% chance of growth in the next month (21 trading days) based on our machine learning analysis of stock price trends over the past ten years. View our analysis MU stock likely to rise, For additional details about MU’s historical returns and peer comparison, see Micron Technology Stock Returns,

Twenty One Days: MU 11%, versus S&P500 3.9%; best performing market

(25% chance occurrence; 65% chance of increase in the next 21 days)

  • mu stock 11% rose Over the past twenty one trading days (one month), an increase of 3.9% over the broader market (S&P500)
  • A change of 11% or more in twenty one business days is a 25% probability event, having happened 629 times out of 2515 in the past 10 years.
  • Out of these 629 cases, the stock has seen positive momentum on 408 occasions in the next twenty one trading days
  • it indicates a 65% chance of the stock rising in the next twenty one trading days

Day ten: MU 9.5%, versus S&P 500 2.2%; best performing market

(16% chance event; 53% chance of increase in the next 10 days)

  • mu stock 9.5% rose Over the past ten trading days (two weeks), the broader market (S&P500) is up 2.2%
  • A change of 9.5% or more in ten trading days is a 16% probability event, having happened 392 times out of 2515 in the past 10 years.
  • Out of these 392 cases, the stock has seen positive momentum on 207 occasions in the next ten trading days
  • it indicates a 53% chance of the stock rising in the next ten trading days

Day Five: MU 13%, versus S&P500 4.8%; best performing market

(3% chance event; 42% increase chance over the next five days)

  • mu stock 13% rose in the five-day trading period ended 12/27/2021, compared to an increase of 4.8% against the broader market (S&P500)
  • A change of 13% or more in five trading days (one week) is a 3% probability event, having occurred 76 out of 2515 times in the past ten years.
  • Out of these 76 instances, the stock has seen positive momentum on 32 occasions over the next five trading days.
  • it indicates a 42% chance of the stock rising in the next five trading days

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