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Ubiquiti Inc. (UI) Outpaces Stock Market Gains: What You Should Know

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Ubiquiti Inc. (UI - Free Report) closed at $291.19 in the latest trading session, marking a +0.8% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.18%.

Coming into today, shares of the computer networking company had lost 15.43% in the past month. In that same time, the Computer and Technology sector gained 9.78%, while the S&P 500 gained 6.99%.

Wall Street will be looking for positivity from UI as it approaches its next earnings report date. The company is expected to report EPS of $2.59, up 60.87% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $418.41 million, up 24% from the prior-year quarter.

UI's full-year Zacks Consensus Estimates are calling for earnings of $10.23 per share and revenue of $1.84 billion. These results would represent year-over-year changes of +73.1% and +42.97%, respectively.

Investors should also note any recent changes to analyst estimates for UI. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. UI is currently a Zacks Rank #3 (Hold).

Digging into valuation, UI currently has a Forward P/E ratio of 28.24. For comparison, its industry has an average Forward P/E of 20.28, which means UI is trading at a premium to the group.

We can also see that UI currently has a PEG ratio of 0.86. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. UI's industry had an average PEG ratio of 2.26 as of yesterday's close.

The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 106, putting it in the top 42% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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