Is Micron Technology Stock a Buy?
Semiconductor stocks are notoriously volatile, and becoming accustomed to the frequent up-and-down sales cycles -- a norm for all businesses related to manufacturing -- is a must. Memory chip maker Micron Technology (NASDAQ: MU) is no exception.
In fact, past sales-cycle slumps have left Micron operating in a sea of red ink and have led to poor returns on invested capital (the money a company puts to work for research, optimizing its operations, etc.). And while the current slump that started to crop up in late 2018 may last longer than expected thanks to the outbreak of COVID-19, the company is in decidedly better shape than ever before.
Micron's big year-over-year revenue declines from all-time highs and fast-evaporating profits are well documented; but even with sales having reached or nearing some sort of cyclical bottom, Micron remains in the black. And profit metrics aren't simply holding on by a thread. While operating profits totaling well into double-digits as a percentage of the top-line are gone for now, Micron is faring pretty well, especially considering its past performance during downturns.
Source Fool.com
