Micron stock outperformance relative to Samsung flies counter to historical trends, says Instinet
Ahead of Micron Technology Inc.'s earnings report Wednesday afternoon, Instinet analyst Romit Shah weighed in with some general thoughts on the stock. "Micron shares are up over 40% year to date; however, what really stands out is the relative share performance to Samsung ," Shah wrote. "Micron is outperforming its largest competitor by more than 50% this year." Shah said that Micron's strong relative performance goes against the notion that a strong memory cycle will lift shares of all players in a relatively uniform fashion. "This year's performance though runs counter to the recent historical trend, suggesting that Micron has important company-specific drivers that are driving outsized shareholder return," Shah wrote. "We expect this to continue in the August period." Micron shares are up 94% over the past 12 months, while the S&P 500 has gained 13% and the PHLX Semiconductor Index has risen 30%.
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