Jay Woods is closely monitoring Micron Technology as it prepares to release its fiscal third-quarter earnings report. He has labeled Micron as the 'stock of the year' but warns that the stock could drop approximately 15% after the earnings announcement, given its historical performance where it has fallen six out of the last eight earnings reports with an average decline of 6.5%.
Despite a remarkable increase of over 300% this year, Woods notes that Micron's stock is currently about 15% above its 20-day moving average, raising concerns about its sustainability. He suggests that if a pullback occurs, it could bring the stock down to around $1,000, representing a nearly 12% decrease from its last closing price of $1,133.99.
Additionally, Woods discusses other significant stocks reporting earnings this week, including FedEx and Darden Restaurants, and mentions the upcoming Russell reconstitution, which he describes as a major trading event. He also references the personal consumption expenditures report, anticipating a core reading around 3.4%