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Micron (MU): A Strong Growth Stock Powering Self-Driving Cars

The world of autonomous driving is set to become a major industry, with the potential to grow massively over the next few decades. Investors have taken notice and are currently on the lookout for stocks that have exposure to the self-driving car push.

Picking stocks in this industry might seem to be growth plays on their face. But not every company with ties to autonomous vehicles are set to pop. This is where picking a stock with real growth fundamentals can be fun and potentially rewarding, as it presents the possibility for massive returns.

One stock that fits this mold for outside growth, based on real business segment fundamentals, is Micron Technology, Inc. MU.

As a semiconductor giant, Micron markets its memory and data storage solutions to computer manufacturing firms, consumer electronics companies, and telecommunications powers. Micron has also invested heavily in vehicle safety technology that could prove to be foundational for a driverless car future.

The company’s vehicle-focused semiconductor technology currently helps reduce human driving errors. This includes gesture control interfaces that help detect drowsy and distracted drivers and vehicle sensors that create more advanced computer “vision.” Along with these technologies, Micron’s artificial intelligence already helps vehicles detect and alert drivers to objects, pedestrians, and other hazards that might be in the road.

Fundamentals

Micron is currently a Zacks Rank #1 (Strong Buy) that rocks an “A” grade for Growth. On top of that, Micron’s sports an overall VGM grade of an “A.”

Shares of Micron have already surged over 133% during the last 52 weeks. Micron has seen its stock price climb nearly 47% in the last 12 weeks alone. It seems that this substantial stock price movement was based on Micron’s ability to grow both it top and bottom lines.

At the end of September, Micron reported fourth-quarter and full-year 2017 results that climbed year-over-year. The company’s Q4 revenues skyrocketed 91%, while its full-year sales soared 64% to hit $20.32 billion.

"Micron delivered exceptional fourth quarter and fiscal year results, reflecting solid execution and robust demand for our memory and storage solutions," Micron CEO Sanjay Mehrotra said in a statement.  "We expect healthy industry fundamentals to continue into 2018, supported by increasingly diverse end markets and applications.”

Investors who didn’t benefit from Micron’s substantial gains so far this year might be glad to know that the semiconductor company’s growth metrics are set to keep on climbing.

Micron revenues are expected to jump nearly 60% in its current quarter, based on our current consensus estimates. The company seems set to keep on cruising as its full-year 2018 revenues are projected to climb almost 20% to hit an upward estimate of $24.20 billion.

Micron Technology, Inc. Price, Consensus and EPS Surprise

Micron Technology, Inc. Price, Consensus and EPS Surprise | Micron Technology, Inc. Quote

Micron has failed to top earnings estimates just once in the last three years, including posting beats in the last nine quarters.

Within the last 60 days, Micron has earned four upward earnings estimate revisions for its current quarter. The semiconductor company also received four upward revisions, along with no downward changes, for its upcoming year.

Micron’s earnings are projected to skyrocket over 574% in its current quarter. For its full fiscal year 2018, the company’s earnings are set to surge over 50% to touch as high as $7.76 per share.

Bottom Line

Based on Micron’s major 2017 success, its future growth projections, and its current Zacks Rank, it seems like a stock that growth investors should consider.

When investors add these growth metrics and its Zacks Rank on top of the simple fact that Micron makes products that are becoming vitally important and necessary in the age of connected-products, this semiconductor memory powerhouse becomes even more eye-catching.

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