Micron (MU) is set to report its fiscal Q4 earnings on September 23, and Wall Street is buzzing with optimism. Top analysts from Wedbush, Susquehanna, and Wolfe Research, among others, have reaffirmed a Buy rating. Interestingly, based on options pricing, traders expect MU stock to move roughly 10.6% in either direction after the report. Thus, this may present a buying opportunity, especially through ETFs that offer diversified exposure to MU without the risk of holding the stock directly.
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The chipmaker is expected to post Q4 revenue of around $11.14 billion and earnings of $2.79 per share. This reflects a 43% jump in revenue and a 136.4% EPS gain year-over-year.
Investors seeking exposure to MU stock may consider the U.S. Global Technology and Aerospace & Defense ETF (WAR) and the REX FANG & Innovation Equity Premium Income ETF (FEPI). Let’s take a deeper look at these two ETFs.
U.S. Global Technology and Aerospace & Defense ETF
The WAR ETF is an actively managed fund that focuses on companies combining advanced tech with defense and aerospace innovation. Apart from MU stock, the ETF provides exposure to other major players like Nvidia (NVDA), RTX (RTX), and AeroVironment (AVAV). Importantly, MU accounts for 8.79% of the WAR ETF’s total holdings.
Overall, the ETF has $8.77 million in assets under management (AUM). Also, it has an expense ratio of 0.6%. Over the past three months, the WAR ETF has generated a return of 10.03%.
On TipRanks, WAR has a Moderate Buy consensus rating based on 23 Buys and seven Holds assigned in the last three months. At $27.24, the average WAR ETF price target implies 6.4% upside potential.
REX FANG & Innovation Equity Premium Income ETF
The FEPI ETF is an actively managed fund that blends exposure to top tech innovators with an income-generating strategy. It focuses on companies in the Solactive FANG Innovation Index, including Apple (AAPL), Amazon (AMZN), and Tesla (TSLA).
MU stock constitutes 7.69% of the ETF’s holdings. Overall, the ETF has $517.04 million in AUM. Also, it has an expense ratio of 0.65%. The FEPI ETF has gained 4.86% in the past three months.
Turning to Wall Street, the ETF has a Moderate Buy consensus rating. Of the 17 stocks held, 12 have Buys and five have Holds. At $49.96, the average FEPI ETF price target implies a 5.29% upside potential.
Concluding Thoughts
ETFs provide indirect exposure to MU stock, reducing risk compared to investing directly in the stock. Furthermore, ETFs are a liquid and transparent way to participate in the market. Investors seeking ETF recommendations might consider FEPI and WAR, as these ETFs offer exposure to Micron stock.