1 Stock to Buy, 1 Stock to Sell This Week: Micron, Nike

As the market continues to evolve, investors are always on the lookout for the next big opportunity. This week, we're highlighting one stock to buy and one stock to sell based on recent trends and expert analysis.

Stock to Buy: Micron Technology (MU)

Micron Technology, a leading provider of memory and storage solutions, has been making waves in the tech industry. The company's focus on high-bandwidth memory (HBM3E) chips has driven its earnings growth, with analysts anticipating strong earnings driven by robust demand for these chips in AI and cloud computing applications.

Cloud computing and AI applications play a significant role in Micron's revenue expansion. The company's innovative DRAM and NAND products power advancements in AI, cloud computing, and 5G connectivity, making it a critical player in these growing markets.

Micron recently received a $6.165 billion federal grant to support its semiconductor manufacturing expansion in New York and Idaho. The company plans to invest approximately $100 billion in New York and $25 billion in Idaho over two decades, creating about 20,000 jobs. This investment aligns with the CHIPS and Science Act of 2022, which aims to strengthen the U.S. semiconductor industry and reduce dependence on foreign suppliers.

Analysts expect Micron to report strong earnings growth in its upcoming fiscal 2025 first-quarter results, with revenue growth of 84% year-over-year and a swing to a profit of $1.84 billion or $1.58 per share.

Stock to Sell: Nike, Inc. (NKE)

Nike, the global athletic apparel giant, faces significant headwinds this week as it prepares to report fiscal second-quarter results. Despite its strong brand recognition, the company is grappling with declining consumer demand for athletic wear and footwear, alongside supply chain challenges.

Analysts have slashed their profit estimates amid weakening operating margins and slowing growth in North America and China, two of Nike's largest markets. The company is expected to post a 37.8% drop in adjusted earnings per share to $0.64, with revenue projected to decline by 9.7% from the year-ago period to $12.1 billion.

Nike's stock has fallen to a 2024 low of $70.75 on August 5 and closed at $77.25 on Friday. At its current valuation, the Beaverton, Oregon-based sportswear retailer has a market cap of $115 billion. Shares are down 28.8% in the year-to-date.

In conclusion, Micron Technology's focus on high-bandwidth memory chips and its expansion plans make it an attractive stock to buy this week. Meanwhile, Nike's declining consumer demand and supply chain challenges make it a stock to sell. As always, it's essential to conduct thorough research and consider multiple perspectives when making investment decisions.