Ubiquiti Networks closed the most recent trading day at $107.17, moving +0.75% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.14%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, added 0.68%.
Heading into today, shares of the computer networking company had gained 9.47% over the past month, outpacing the Computer and Technology sector's gain of 8.09% and the S&P 500's gain of 9.43% in that time.
Investors will be hoping for strength from UBNT as it approaches its next earnings release, which is expected to be February 14, 2019. On that day, UBNT is projected to report earnings of $0.94 per share, which would represent year-over-year growth of 23.68%. Meanwhile, our latest consensus estimate is calling for revenue of $253.40 million, up 1.03% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.12 per share and revenue of $1.06 billion. These totals would mark changes of +11.65% and +4.57%, respectively, from last year.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. UBNT currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that UBNT has a Forward P/E ratio of 25.85 right now. For comparison, its industry has an average Forward P/E of 18.09, which means UBNT is trading at a premium to the group.
Also, we should mention that UBNT has a PEG ratio of 1.84. 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. Wireless Equipment stocks are, on average, holding a PEG ratio of 1.72 based on yesterday's closing prices.
The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 25, putting it in the top 10% 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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Ubiquiti Networks (UBNT) Outpaces Stock Market Gains: What You Should Know
Ubiquiti Networks closed the most recent trading day at $107.17, moving +0.75% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.14%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, added 0.68%.
Heading into today, shares of the computer networking company had gained 9.47% over the past month, outpacing the Computer and Technology sector's gain of 8.09% and the S&P 500's gain of 9.43% in that time.
Investors will be hoping for strength from UBNT as it approaches its next earnings release, which is expected to be February 14, 2019. On that day, UBNT is projected to report earnings of $0.94 per share, which would represent year-over-year growth of 23.68%. Meanwhile, our latest consensus estimate is calling for revenue of $253.40 million, up 1.03% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.12 per share and revenue of $1.06 billion. These totals would mark changes of +11.65% and +4.57%, respectively, from last year.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. UBNT currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that UBNT has a Forward P/E ratio of 25.85 right now. For comparison, its industry has an average Forward P/E of 18.09, which means UBNT is trading at a premium to the group.
Also, we should mention that UBNT has a PEG ratio of 1.84. 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. Wireless Equipment stocks are, on average, holding a PEG ratio of 1.72 based on yesterday's closing prices.
The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 25, putting it in the top 10% 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.