Ladies and gentlemen, pullbacks on crazy-cheap growth stocks are a blessing. Don’t buy into the bear-bait. Our number one oversold memory stock to trade now is Micron Technology Inc. (MU), says Lucas Downey, co-founder of MoneyFlows.
The $1 trillion chip giant provides memory and storage solutions for hyperscalers and data center customers. The company has noted the supply-demand imbalance for HBM, DRAM, and NAND to persist well past 2026.
The latest selloff has sent shares down 25% from highs. This has allowed the forward P/E to collapse to just 6.3 times.
This is a stock in growth mode, where earnings continue to improve. In fact, the PEG ratio sits at just .05, making MU the cheapest stock in the S&P 500 Index (^SPX) by this metric. Estimated earnings continue to climb, making the equity pullback extremely attractive. Estimated EPS for 2027 sits at $153.53. The estimate for 2028 has climbed to $166.45.
Folks, as we’ve hinted at routinely, these estimates can be low and are often revised higher. This is why Micron has been the darling of institutional investors the past year.
Whenever smart investors see a mispriced opportunity, they pounce. MU has been under immense accumulation. The recent consolidation mimics prior cool off periods. Discrete inflows ramp, then subside before powering higher.
Low-volume summertime gyrations are normal. As far as I see it, Micron represents one of the most compelling opportunities in the market.
Recommended Action: Buy MU.
