Micron on top

0:00Welcome back everybody today. I am happy to have on Steve Cress as I'm sure you are all happy to hear from him. The market is about to close. Micron is about to report. It's a company that Steve has talked about. It's been an alphapix for quite some time. As we discuss on YouTube's very own Wall Street breakfast with Steve Cress. Steve, what are you looking at when you're looking at earnings? Yeah, well, first thanks for having me today. I appreciate it. Absolutely. Micron is one of the largest stocks that investors are focusing on. And today, the report results should be roughly within an hour. It's almost 3.30 Eastern Standard Time and just outside of New York. So Micron will be reporting shortly. And today, on Wednesday, September 30th, Micron is reporting to Bill Faxxat Research Codagra. But we're

1:00most interested in Micron because that is a big name. It is a quatt name. We've had a strong buy on it for a long time. And the market is expecting good things out of it. Fortunately, Micron had a really good beat last time on both the normalized and gap basis. There were eight beats and zero misses. So for the upcoming quarter on a normalized EPS basis, we're looking for $31.82. That's consensus and consensus gap with $31.94. Literally 1,000% growth. In the last 90 days, coming to this quarter, 12 analysts revised their estimates up and two revised it down. For the full year, for the fiscal year, 13 analysts revised their estimates up and only one revised it down. It's a C++ grade. So you would think 13 up one dab is better than a C++ and actually showed you what the sector median is. So 86% are analysts are expecting

2:03that the sector has good beats where you can see for Micron. It's 92%. So that number is higher by about 7.84%. So that's me is pretty positive overall. That's only C++. So there are other companies where you have 20 analysts that have revised their estimates up and zero have revised it down. But 13 to 1 is still really good in my book. I will EPS estimates for August 2026 and August 2027 as well as review. And you can just take a look at the quarters to look how many times they beat. They beat in every time since the third quarter of 2023. So their business is just doing fantastic. You can see how much every time the beat gets a little bit better. And recently it's just been blown out of the water. I mean, third quarter a year ago, they came in at 32 cents. And then you could see if you look at the second quarter from a year ago, it came in

3:04at a dollar 56. The beat was by 14 cents. So looking at the second quarter of this year, it went from a dollar 56 to $12.20. So this is just extreme in terms of how fast their EPS it's growing. So what would I expect today? Well, let's go to our stock page. And you can see we have the quant with a strong buy. You can see all the key investment characteristics that we look at valuation growth, profitability and momentum, all a pluses. The only one that's a little bit lower is the analysis for visions. But as I said, that's 13 up one down. I'll take that any day. So the stocks still looks really great from a fundamental perspective. I will say it is still significantly off. It's 52.5. So currently trading at $1,069, we could see that back in June,

4:04the stock was trading at around, looks like it's closer to about $1200. So that 52-week range is very wide. I have low of 165 and I have 1,255. So it's still close to the high side, but still significantly off its June highs. And for all intents and purposes, you're going to have another quarter of record review and record ratings. Care to weigh in on what you imagine the market to look like after hours and then maybe pre-market and then maybe at open tomorrow. Just kind of your sense of like how the sector may move in conjunction with micron. Again, nobody has a crystal ball, even you, but based on your rich history in the markets. Yeah, so what we're looking at right now is we could see crude oil is up a little bit. We're really just looking one day at micron reports today. They could have record review, record earnings, and it's quite possible the stock can still come down. Case in point when Nvidia reported

5:08they had record review, record earnings, beat expectations, and the stock still came down that day. So we're clearly in a market where sentiment gets a heavier weight than fundamentals. And sentiment is negative or anxiety is high even on a day because of perhaps geopolitical bends or movements in interest rates, you know, the 10 year treasury or the 30 year treasury or economic data points that can come out. All we could impact and the, you know, there'll probably be economic data points tomorrow that can impact the market. But right now we're looking at gold a little bit higher. And if we look at treasuries, we could see the 10 year treasury is a little bit higher too. So the market may not feel comfortable with that going into tomorrow. It will look to my contactology to see what earnings are like. My guess is with the 10 year treasury up a little bit now and with Brent up 2% now, the market is actually up slightly on the day. But what I'd like to do is actually show you the market data. And if we jump into sectors, so I've moved from

6:13the earnings calendar to sectors and I'm just going to look at today and sort of by today's performance, you can actually see technology is the best performing sector with communication services right behind it. Then the underperformers are consumer staples and healthcare, which traditionally are really safe haven sectors. So safe haven sectors are trading well today, a little bit more focus on the risk on sectors. With having said that within the risk on sectors, it could be a little bit granular. So what I'm going to do is look at themes and sub sectors. And I'm going to go down to technology so I can see how technology is playing out today. So overall technology is the best performing sector. And within it, we see cyber security and sub-econductors are outperforming within technology. The underperformers are blockchain, smartphones and social media. Now that's just on the day. So I'd say the market is fairly positive

7:14right now on the semiconductor. So perhaps if we do have a good number and we don't have an economic data point tomorrow that scares everybody, we could be in good shape of micron beats today. And going into the closing hours with less than a half hour ago, we can see microns up slightly. I think most people are expecting a beat. So it's got to be a pretty good beat, I think, in order to move the needle. That's all for today's Wall Street lunch. Look for links for stories in the show notes section. Don't forget, these episodes will be up with transcriptions at seekingoffa.com slash WSB. And join the highest level discussion of any stock or ETF in our community of serious investors like you. Find us at seekingoffa.com slash subscriptions.