In the latest trading session, Ubiquiti Networks (UBNT) closed at $134.24, marking a +0.47% move from the previous day. This move outpaced the S&P 500's daily gain of 0.36%. At the same time, the Dow added 0.01%, and the tech-heavy Nasdaq gained 0.27%.
Coming into today, shares of the computer networking company had gained 1.86% in the past month. In that same time, the Computer and Technology sector gained 4.78%, while the S&P 500 gained 3.98%.
UBNT will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.13, up 11.88% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $280.29 million, up 3.9% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for UBNT. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. UBNT is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that UBNT has a Forward P/E ratio of 27.38 right now. This valuation marks a premium compared to its industry's average Forward P/E of 22.33.
Meanwhile, UBNT's PEG ratio is currently 1.38. 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. Wireless Equipment stocks are, on average, holding a PEG ratio of 2.99 based on yesterday's closing prices.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 66, which puts it in the top 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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