Ubiquiti Networks (UBNT) Outpaces Stock Market Gains: What You Should Know
Ubiquiti Networks (UBNT) closed the most recent trading day at $162.19, moving +1.88% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.46%. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, added 0.59%.
Prior to today's trading, shares of the computer networking company had gained 14.05% over the past month. This has outpaced the Computer and Technology sector's gain of 5.33% and the S&P 500's gain of 3.24% in that time.
Wall Street will be looking for positivity from UBNT as it approaches its nex t earnings report date. The company is expected to report EPS of $1.06, up 8.16% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $257.28 million, up 2.75% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.66 per share and revenue of $1.12 billion, which would represent changes of +26.29% and +10.56%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for UBNT. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. UBNT is currently a Zacks Rank #1 (Strong Buy).
Valuation is also important, so investors should note that UBNT has a Forward P/E ratio of 34.16 right now. For comparison, its industry has an average Forward P/E of 24.14, which means UBNT is trading at a premium to the group.
Also, we should mention that UBNT has a PEG ratio of 1.68. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. UBNT's industry had an average PEG ratio of 2.3 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 96, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.