Ubiquiti Networks (UBNT) closed at $169.74 in the latest trading session, marking a -0.42% move from the prior day. This change was narrower than the S&P 500's 0.75% loss on the day. Meanwhile, the Dow lost 0.61%, and the Nasdaq, a tech-heavy index, lost 0.57%.
Heading into today, shares of the computer networking company had gained 7.78% over the past month, outpacing the Computer and Technology sector's gain of 4.99% and the S&P 500's gain of 4% in that time.
Wall Street will be looking for positivity from UBNT as it approaches its next earnings report date. The company is expected to report EPS of $1.06, up 8.16% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $257.28 million, up 2.75% from the year-ago period.
UBNT's full-year Zacks Consensus Estimates are calling for earnings of $4.66 per share and revenue of $1.12 billion. These results would represent year-over-year changes of +26.29% and +10.56%, respectively.
It is also important to note the recent changes to analyst estimates for UBNT. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. UBNT currently has a Zacks Rank of #3 (Hold).
In terms of valuation, UBNT is currently trading at a Forward P/E ratio of 36.58. For comparison, its industry has an average Forward P/E of 24.6, which means UBNT is trading at a premium to the group.
Investors should also note that UBNT has a PEG ratio of 1.8 right now. 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. The Wireless Equipment was holding an average PEG ratio of 2.6 at yesterday's closing price.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 29% 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.
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