Ticker Reports for August 19th
Micron Stock Still Cheap Despite 25% Rally, Analysts Say
Most investors are rightfully wary of trading or buying a stock during earnings season, since the implied volatility around the announcement dates can throw off even the shrewdest in the marketplace. However, knowing what to look for helps in a situation like this, and that is where an opportunity for continued rallies has just shown up inside the technology sector of the United States.
Tied to the massive demand wave for chips and data centers hitting the global economy, shares of Micron Technology Inc. (NASDAQ: MU) are giving investors new reasons to stick around and watch the show go on further (and higher).
Even though the stock has already rallied recently, partly due to the ongoing industry expansion and its recent upbeat earnings results, the current setup also suggests that Micron could continue to go higher.
This is where savvy investors will recall that the market always prices a stock based on its future growth expectations. Comparing today’s valuation for Micron stock versus the future forecasts for earnings per share (EPS) will point investors to a widening gap that can only be closed by another wave of upswings in the stock price.
Micron Stock Is Back in the Game
After being left behind by peers in the industry, a previously lackluster performance has become a shining star for investors in the artificial intelligence and data center sectors. Over the past quarter, Micron stock has delivered a 25.2% rally, outperforming the broader S&P 500 index by a significant margin, with the S&P 500 index showing an 8.6% performance.
Outperforming the market over one quarter is one thing, which is in the past; now, investors need to look to the future to determine whether Micron has what it takes to break into new highs. Perhaps the initial answer can be found in the company’s latest quarterly earnings report.
While the market expected Micron to report $1.57 in EPS, it beat these forecasts with $1.91 instead (22% above consensus). That beat alone was enough to rally the stock and close the performance gap against some of its biggest peers and competitors, but there’s more to the numbers.
Micron’s HBM chips saw higher-than-expected demand this quarter, and management provided guidance that this trend would continue into the coming quarters. Therefore, investors have a reasonable basis to consider when determining Micron's stock valuation and future trading price.
It is now time for these investors to connect the dots moving forward, and cushion the anxiety that comes with thinking of buying a stock near its 52-week high.
This Ratio Sets the Stage for Micron Stock
The price-to-earnings-growth (PEG) ratio is often used to gauge the relation between today’s valuation multiples and tomorrow’s expected EPS growth, essentially checking whether this growth has been priced in. Any reading below 1.0x suggests not all of this future growth has been priced in, leaving investors with upside opportunities.
For Micron, considering that Wall Street analysts now forecast $2.04 in EPS for the fourth quarter of 2025, it seems that today’s P/E multiples have fallen below where they need to be if they are to suggest all this is priced in already. Therefore, Micron carries a PEG of only 0.2x, implying that 80% of this future EPS growth is not priced in.
Living and breathing these multiples in their research, some Wall Street analysts decided to give their opinion about where Micron stock should be trading. While the consensus view is of a Moderate Buy rating valuing Micron at $147.2 per share, others aim to incorporate this future EPS growth potential driven by new HBM demand.
For instance, Kevin Cassidy from Rosenblatt Securities is an analyst who sees Micron stock as a Buy with a valuation target of $200 per share. Compared to where the stock trades today, that call would imply an additional upside potential of 62% to justify this stock being considered even after its recent rally.
With this setup in mind, plus the stock’s recent momentum, it shouldn’t come as a surprise for investors to see new institutional buying activity for Micro stock. As of mid-August 2025, those from Rafferty Asset Management added 37.5% to their existing holdings in Micron, bringing their net position to a high of $508.9 million today.
This should serve as a vote of confidence and high conviction, tied to the fundamental industry setup and Micron's significant demand growth. This sets Micron up for a potential undervalued position compared to the EPS it can deliver in the coming months.
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REVEALED FREE: Our three TOP stocks of 2025 are …
Palo Alto Networks Uptrend Confirmed! New Highs Set by Year's End
Palo Alto Networks’ (NASDAQ: PANW) FQ4 release affirmed the market outlook for cybersecurity and its leading position in the industry. The shift to platformization drives growth, margin, outperformance and accelerates business momentum.
Unifying security protocols across the enterprise saves businesses money by reducing the number and cost of adverse incidents and improving internal efficiency, while doing the same for Palo Alto.
The takeaway for investors is that the robust business continues to perform at the highest levels, qualifying as a Rule-of-50 company (a measure of high-quality, profitable growth) for the fifth consecutive year and will likely continue to do so for the foreseeable future.
The net result is that shareholder value is growing at a double-digit pace and underpinning the uptrend in share prices. Details from the balance sheet highlight the strength, including increased cash, current, and total assets, low leverage, and a 50% increase in shareholder equity.
AI Drives Growth for Palo Alto Networks
Demand for Palo Alto’s AI-enabled Next-Generation Security drove results in Q4. The company reported a 15.4% YOY increase in revenue to outpace the consensus estimate by a slim margin on a 32% increase in Next-Gen ARR.
Segmentally, Product sales led with a 19% gain, up 27% sequentially, and were offset by a slightly slower 14.8% increase in Subscriptions.
RPO, another leading indicator of business, was also positive, accelerating to 24%, and is expected to remain strong in the upcoming quarters.
The margin news is also good. The company’s improving operational quality and growing revenue leverage led to a significant improvement in the margin. The adjusted net income grew at an accelerated 28% pace, leaving EPS up 25% and 6 cents better than expected, 670 basis points above MarketBeat’s reported consensus.
More importantly, the strengths are expected to continue and are reflected in the guidance.
Palo Alto is guiding for FQ1 and full-year 2026 revenue and earnings in a range above the consensus. The target for 2026 earnings is $3.80 at its midpoint, 12 cents more than expected, and is likely a cautious estimate due to the accelerating business trends.
Analysts Forecast Significant Upside for PANW: Trends Are Bullish
While no analysts issued revisions or updates within the first 12 hours of the report, the sentiment trends are positive and are unlikely to be changed by the news. The more likely scenario is that the bullish trends will be affirmed or strengthened, including upgrades and price target increases.
Until then, the group rates this stock as a Moderate Buy with potential for a 25% upside at consensus relative to the prerelease closing price. There is a bullish bias to the sentiment; 65% of the 40 analysts tracked rate it as a Buy, and the price target trend is positive, leading to the high end range.
The high-end range is significant for investors because the bar was raised in August. Analysts at Morgan Stanley increased their target to $495, well above the previous high-end. The new target forecasts this stock to advance by more than 180%, and it is not unreasonable to think it can reach that level.
The forecasts and valuation metrics put this stock at only 13x its 2035 earnings estimates. A move aligning this stock with blue-chip tech peers could be worth a minimum of 130%, and the forecast is likely to be low.
The Technical Outlook: Palo Alto Networks Uptrend is Intact
Palo Alto Networks’ stock price corrected in early Q3, aligning with a spike in institutional selling. However, the market has confirmed the uptrend with a 5% pre-market share price increase that reveals support at a higher level.
The move put the market above all three moving averages, suggesting a significant shift in market dynamics. The likely outcome is that PANW shares will continue to move higher and will possibly set a new high before the end of 2025.
Silver's Next Move Could Shock Wall Street
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Medtronic: The Opportunity Gets Healthier for Income Investors
Medtronic’s (NYSE: MDT) FQ1 results and guidance update did not spark a rally in the share price. Still, they did affirm a robust outlook that includes accelerating business growth, improving profitability, and reversing the stock price action.
The critical takeaways are that growth was present, outperformed the consensus reported by MarketBeat, and guidance was improved.
Among the catalysts for performance were tariffs, specifically a less-than-expected impact, which is expected to carry through the year’s end.
Activists, Analysts, and Institutions are Buying Medtronic in 2025
The sell-side activity in MDT shares is remarkable, highlighting the deep value and market conviction toward the turnaround efforts. The activity includes a 10% stake by Elliot Management, which views the company as undervalued and aims to improve it.
Their stake resulted in two new board positions and committees aimed at uncovering opportunities to enhance performance, accelerate growth, and unlock value.
Analysts and institutional activity are also robust, supporting the reversal outlook with increased coverage, firing sentiment, and an uptrend in the price target revisions.
Looking at the institutions, MarketBeat data shows that they've been accumulating every month in 2025 up until mid-August. They offer a strong foundation and a favorable market environment, holding over 80% of the stock.
The analysts rate this healthcare stock as a Moderate Buy, up from last year’s Hold, with the price target rising. The recent revisions led to an above-consensus level of $110, about 20% upside from the pre-release closing price.
A move to the $100 consensus would be significant because it would break the market out of a trading range and set a new high; a move to $110 would be even more so.
Medtronic Outperforms in Q1, Raises Profit Guidance, Affirms Acceleration
Medtronic had a solid quarter in Q1 despite macroeconomic headwinds and uncertainty. The company’s revenue grew 8.5% to $8.5 billion, outpacing the consensus by $0.130 billion. The strength was driven by all segments, led by an 11.5% increase in Diabetes revenue.
The 11.5% gain is critical as this segment is expected to be spun off, unlocking segment value and allowing the remaining business to focus on higher-margin revenue streams. Other segments, including Neuroscience, Medical/Surgical, and Cardiovascular, grew by 4.4%, 4.3%, and 9.3%, respectively.
The margin news is also good. Despite mixed results on a line-by-line basis, the combination of internal efforts, improving revenue leverage, and lower-than-expected tariffs led to better-than-expected earnings.
The $1.26 is up only 2% compared to last year, and outpaced consensus by 3 cents, leading management to upgrade the full-year outlook. The impact of tariffs was reduced by $15 million, and the forecast for EPS by a dime, putting the new low-end at the prior high.
The critical detail is that management expects revenue growth to accelerate in the back half of the fiscal year, the earnings outlook is improved, and it may be underestimating the strength.
The Technical Outlook: Medtronic Retreats to Support, Market Buys
Medtronic’s share price fell more than 3.5% following the Q1 release and guidance update, but is unlikely to fall much further. The market retreated to critical support at a cluster of moving averages where buying was present. Assuming the market follows through on this signal, MDT’s stock price action aligns with a market reversal and will likely result in a quick rebound.
If not, MDT could fall to a lower level where a deeper value would be present, but that is not expected. The more likely scenario is sideways to upward movement for the remainder of calendar Q3 2025 with potential for a new multi-year high by the year’s end.
Elon's BIGGEST warning yet?
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