Ubiquiti Networks (UBNT) closed at $164.06 in the latest trading session, marking a +0.66% move from the prior day. This move outpaced the S&P 500's daily of 0%. Meanwhile, the Dow lost 0.05%, and the Nasdaq, a tech-heavy index, lost 0.21%.
Prior to today's trading, shares of the computer networking company had gained 14.69% over the past month. This has outpaced the Computer and Technology sector's gain of 7.39% and the S&P 500's gain of 5.49% in that time.
UBNT will be looking to display strength as it nears its next earnings release. On that day, UBNT is projected to report earnings of $1.06 per share, which would represent year-over-year growth of 8.16%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $257.28 million, up 2.75% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.66 per share and revenue of $1.12 billion. These totals would mark changes of +26.29% and +10.56%, respectively, from last 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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Within the past 30 days, our consensus EPS projection remained stagnant. UBNT is holding a Zacks Rank of #1 (Strong Buy) right now.
Digging into valuation, UBNT currently has a Forward P/E ratio of 34.97. This valuation marks a premium compared to its industry's average Forward P/E of 24.6.
Also, we should mention that UBNT has a PEG ratio of 1.72. 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 2.34 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 64, putting 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.
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