Scoop Up This Apple Supplier Now

The stock has averaged a monster one-month return after other pullbacks to its 160-day trendline

While most chip stocks rode a big Apple (AAPL) rally higher this week, Micron Technology, Inc. (NASDAQ:MU) lagged after the iPhone maker's chief financial officer warned of falling NAND prices. In fact, as AAPL stock heads toward a 12.5% weekly win -- its best week since October 2011 -- MU stock is up a modest 0.1% week-to-date, though the shares were last seen 1.8% higher in intraday action to trade at $47.48. But if history is any guide, today's rebound could have legs.

Taking a quick step back, MU stock hit a 17-year peak of $63.42 in mid-March. The shares quickly began selling off amid tech sector headwinds, but the slide has stalled out near familiar support at Micron's rising 160-day moving average.

According to data from Schaeffer's Senior Quantitative Analyst Rocky White, in the three other times the equity has come within one standard deviation of this trendline after spending a lengthy amount of time above it, MU stock has averaged a one-month return of 27.06%, and boasts a 100% win rate. Based on the stock's current perch, another such swing to the upside would put the tech shares north of the round $60 mark for the first time since late March.

Checking out the sentiment backdrop reveals most of Wall Street is still upbeat toward MU stock, which isn't too surprising given its 71% year-over-year return. The 53.50 million Micron shares sold short represent a low 4.8% of the stock's available float and would take fewer than one session to cover, at the average pace of trading.

Elsewhere, the consensus 12-month price target of $72.82 is a 53.2% premium to current trading levels. However four analysts still maintain a "hold" or "strong sell" rating on Micron, suggesting there's room for upgrades -- which could help fuel another big rally off the stock's 160-day trendline.