Should You Buy Micron Technology Stock?

Micron Technology (NASDAQ: MU) continued to benefit from a favorable demand and pricing environment last quarter. For the fiscal fourth quarter, Micron posted revenue and adjusted earnings per share (EPS) growth of 36% and 124% year over year, respectively.

However, management cited some supply problems with customers that could lead to lower bit shipments in the next few quarters, and the stock is down a few percentage points since the earnings report was released on Sept. 28. Micron operates in a cyclical industry, where prices for memory can fluctuate depending on supply and demand conditions. Because of this dynamic, market participants are probably anticipating a reversal in memory pricing, which would put pressure on Micron's profit margin.

However, some of these concerns may already be reflected in the stock's valuation. The shares currently sport a cheap price-to-earnings ratio of just 10. Here's why Micron might be one of the most undervalued tech stocks you can buy.

Source Fool.com