Ubiquiti Networks (UBNT) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
Snap (SNAP) closed at $13.96 in the latest trading session, marking a -1.06% move from the prior day.

Ubiquiti Networks (UBNT) closed at $106.49 in the latest trading session, marking a -0.16% move from the prior day. This change lagged the S&P 500's 0.02% loss on the day. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 0.21%.

Heading into today, shares of the computer networking company had lost 3.44% over the past month, lagging the Computer and Technology sector's loss of 1.41% and the S&P 500's loss of 1.4% in that time.

Wall Street will be looking for positivity from UBNT as it approaches its next earnings report date. This is expected to be February 14, 2019. The company is expected to report EPS of $0.94, up 23.68% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $253.40 million, up 1.03% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.12 per share and revenue of $1.06 billion, which would represent changes of +11.65% and +4.57%, respectively, from the prior year.

Any recent changes to analyst estimates for UBNT should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. UBNT is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, UBNT currently has a Forward P/E ratio of 25.92. This valuation marks a premium compared to its industry's average Forward P/E of 17.17.

It is also worth noting that UBNT currently has a PEG ratio of 1.85. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Wireless Equipment stocks are, on average, holding a PEG ratio of 1.74 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 30, which puts it in the top 12% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow UBNT in the coming trading sessions, be sure to utilize Zacks.com.

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