Ubiquiti Inc. (UI - Free Report) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
Therefore, the Zacks rating upgrade for Ubiquiti basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
For Ubiquiti, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for UbiquitiThis computer networking company is expected to earn $14.92 per share for the fiscal year ending June 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Ubiquiti. Over the past three months, the Zacks Consensus Estimate for the company has increased 2.4%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Ubiquiti to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
On June 29, 2026, Ubiquiti Inc (UI) shares rose 3.7% to a current price of $545.72. The stock has experienced a volatility trend over the past year, ranging fro
The Zacks Wireless Equipment industry is beleaguered by large-scale investments for seamless 5G migration, eroding profits amid escalated price wars, high customer inventory levels and inflated raw material costs. A challenging macroeconomic environment, prolonged geopolitical conflicts and uncertain business conditions continue to weigh on margins. However, the transition to cloud and fiber network infrastructure upgrades should help the industry in the long run.
Despite short-term headwinds, Ubiquiti Inc. (UI - Free Report) , Comtech Telecommunications Corp. (CMTL - Free Report) and InterDigital Inc. (IDCC - Free Report) are likely to profit from a vast proliferation of IoT, increased fiber densification and evolution to superfast cloud services and 5G technology.
Industry Description The Zacks Wireless Equipment industry primarily comprises companies providing various networking solutions, wireless telecom products and related services for wireless voice and data communications through scalable modular platforms. Their product portfolio encompasses integrated circuit devices (chips) and system software for wireless voice and data communications, analog and digital two-way radio, satellite telecommunications, wireless networking and signal processing and end-to-end enterprise mobility solutions. The firms also provide a broad range of routing, switching and security products, video surveillance and machine-to-machine communication components that secure VPN appliances, enable intrusion detection and thwart data theft. Some firms even provide electronic warfare, avionics, robotics, advanced communications and maritime systems to the defense industry.
What's Shaping the Future of the Wireless Equipment Industry? Short-Term Profitability at Stake: Although high infrastructure investments will eventually help minimize service delivery costs to support broadband competition and wireless densification, short-term profitability has largely been compromised. Margins are likely to be affected by the high cost of first-generation 5G products, the now-on-now-off U.S.-Iran war, the prolonged Russia-Ukraine war and oil price volatility. Uncertainty regarding chip shortage (albeit to a lesser extent) and supply-chain disruptions leading to a dearth of essential fiber materials, shipping delays and scarcity of other raw materials due to geopolitical unrest and restrictions in the Strait of Hormuz are expected to affect the expansion and rollout of new broadband networks. Extended lead times for basic components are also likely to hurt the delivery schedule and escalate production costs.
Fiber Densification, Cloud Adoption: To maintain superior performance standards, there is a continuous need for network tuning and optimization, which creates demand for state-of-the-art wireless products and services. Moreover, a faster pace of 5G deployment is expected to augment the telecommunications industry's scalability, security and universal mobility and propel the wide proliferation of IoT. Expansion of fiber optic networks to support 4G LTE and 5G wireless standards, as well as wireline connections, is likely to act as a tailwind. The industry participants are facilitating their customers to move away from an economy-of-scale network operating model to demand-driven operations and seamlessly migrate to 5G by offering easy programmability and flexible automation through steady infrastructure investments. The exponential growth of cloud networking solutions is further resulting in increased storage and computing on a virtual plane. As both consumers and enterprises use the network, there is tremendous demand for quality networking equipment.
High Customer Inventory Levels: Efforts to offset substantial capital expenditure for upgrading network infrastructure by raising fees have persistently reduced demand, as customers tend to switch to lower-priced alternatives. Moreover, high technological obsolescence has escalated operating costs, with steady investments in R&D becoming necessary to fend off competition. Due to a challenging macroeconomic environment and intense market volatility, high customer inventory levels pose another headwind for the companies.
Zacks Industry Rank Indicates Bearish Trends The Zacks Wireless Equipment industry is housed within the broader Zacks Computer and Technology sector. It carries a Zacks Industry Rank #212, which places it in the bottom 13% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bleak prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Before we present a few wireless equipment stocks that are well-positioned to outperform the market based on a strong earnings outlook, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Outperforms S&P 500, Sector The Zacks Wireless Equipment industry has outperformed the S&P 500 composite and the broader Zacks Computer and Technology sector over the past year.
The industry has surged 38.3% over this period compared with the S&P 500 and sector’s growth of 21.7% and 33.2%, respectively.
One-Year Price Performance
Industry's Current Valuation On the basis of trailing 12-month Enterprise Value-to EBITDA (EV/EBITDA), which is the most appropriate multiple for valuing telecom stocks, the industry is currently trading at 31.08X compared with the S&P 500’s 18.21X. It is also trading above the sector’s trailing 12-month EV/EBITDA of 19.4X.
Over the past five years, the industry has traded as high as 38.21X, as low as 8.89X and at the median of 19.7X, as the chart below shows.
Trailing 12-Month Enterprise Value-to EBITDA (EV/EBITDA) Ratio
3 Wireless Equipment Stocks to Watch Ubiquiti: Headquartered in New York, Ubiquiti offers a comprehensive portfolio of networking products and solutions for service providers and enterprises. The company maintains a proprietary network communication platform committed to reducing operational costs by using a self-sustaining mechanism for rapid product support and dissemination of information. Ubiquiti aims to benefit from significant growth opportunities in both emerging and developed economies. These include a relentless pursuit by emerging countries to stay connected with the world through the adoption of wireless networking infrastructure, as developed economies aim to bridge the demand-supply gap for higher bandwidth. The stock has gained 27.9% over the past year. The Zacks Consensus Estimate for its current fiscal and next fiscal-year earnings has been revised 63.4% and 52.9% upward, respectively, since June 2025. Ubiquiti carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price and Consensus: UI
Comtech: Headquartered in Chandler, AZ, Comtech provides secure communications and public-safety solutions for commercial and government customers. The company has streamlined its portfolio by integrating its satellite and public-safety businesses while emphasizing high-margin offerings such as advanced modems, digital ground infrastructure and Allerium cloud software. Backlog and multi-year contracts provide strong revenue visibility in key markets. This Zacks Rank #2 company has a VGM Score of A. The Zacks Consensus Estimate for the current fiscal earnings has been revised 35.8% upward since June 2025.
Price and Consensus: CMTL
InterDigital: Headquartered in Wilmington, DE, InterDigital is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions for digital cellular as well as wireless products and networks. IDCC’s global footprint, diversified product portfolio and ability to penetrate different markets are impressive. Apart from the company’s strong portfolio of wireless technology solutions, the addition of technologies related to sensors, user interface and video to its offerings is likely to drive significant value, considering the massive size of the market it licenses. Furthermore, the company remains committed to pursuing acquisitions to drive its product portfolio and boost organic growth. This Zacks Rank #3 (Hold) firm has gained 23% over the past year. It has a VGM Score of B.
Key Takeaways Ubiquiti's Q3 fiscal 2026 revenues rose 18.7% year over year, led by Enterprise Technology growth.UI's Enterprise Technology revenues climbed 22.6%, with North America revenues up 27% year over year.Ubiquiti expects product innovation and operations investments to support higher-value sales and expansion. Ubiquiti, Inc. (UI - Free Report) delivered impressive results in the third quarter of fiscal 2026, with revenues rising to $788.2 million from $664.2 million a year ago. The 18.7% year over year surge was driven by robust demand across its Enterprise Technology portfolio, while profitability also improved.
The Enterprise Technology segment generated $717.9 million in revenues, up from $585.7 million in the prior-year quarter, up 22.6% year over year. The company is benefiting from rising enterprise networking demand, increasing adoption of IoT-connected devices and continued deployment of unified IT infrastructure solutions. The North America region, which is Ubiquiti’s largest market, generated $410.2 million in revenues, up 27% year over year. Europe, the Middle East and Africa continued to post steady growth. Despite a lower market share, the company has witnessed improved traction in the Asia Pacific and South America regions.
The company continues to enhance the UniFi ecosystem and broaden its networking and unified IT management offerings. Management believes investments in product innovation, inventory management and operations will help maintain its competitive position while supporting higher-value product sales and long-term market expansion. Per our estimate, the company is set to report $2.83 billion in revenues from this segment in 2026, indicating a growth of 26% year over year.
How Are Competitors Faring?Ubiquiti faces competition from Cisco Systems (CSCO - Free Report) and Hewlett Packard Enterprise (HPE - Free Report) . Cisco enables enterprises and service providers to deliver highly secure connectivity from workplaces to data centers worldwide. During the recent quarter, the company’s total revenues increased 12% year over year, while networking revenues rose 25% year over year. Accelerating demand for Cisco’s switching and routing portfolio is driving this growth.
HPE reported revenue growth of 40.4% year over year. The Networking segment generated $2.7 billion in revenues in the second quarter of fiscal 2026, up 148.2% year over year. Management highlighted record campus and branch orders, with nearly 20% normalized growth in enterprise data center switching orders and nearly 30% normalized growth in routing orders. HPE also launched new autonomous, agentic AI operations capabilities and raised its cumulative Networks for AI order target to at least $2 billion by the end of fiscal 2026, reflecting confidence in AI-driven demand for high-performance networking.
UI’s Price Performance, Valuation and EstimatesUbiquiti has gained 36.7% in the past year compared with the Wireless Equipment industry’s growth of 42.5%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, the company’s shares currently trade at 34.57 forward earnings, higher than 31.44 for the industry.
Image Source: Zacks Investment Research
Earnings estimates for UI for 2026 have improved over the past 60 days.
Image Source: Zacks Investment Research
Ubiquiti carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.
By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.
However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Our proprietary system currently recommends Ubiquiti Inc. (UI - Free Report) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Research shows that stocks carrying the best growth features consistently beat the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.
While there are numerous reasons why the stock of this computer networking company is a great growth pick right now, we have highlighted three of the most important factors below:
Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Ubiquiti is 10%, investors should actually focus on the projected growth. The company's EPS is expected to grow 36.1% this year, crushing the industry average, which calls for EPS growth of 12.4%.
Impressive Asset Utilization RatioAsset utilization ratio -- also known as sales-to-total-assets (S/TA) ratio -- is often overlooked by investors, but it is an important indicator in growth investing. This metric shows how efficiently a firm is utilizing its assets to generate sales.
Right now, Ubiquiti has an S/TA ratio of 1.97, which means that the company gets $1.97 in sales for each dollar in assets. Comparing this to the industry average of 0.59, it can be said that the company is more efficient.
While the level of efficiency in generating sales matters a lot, so does the sales growth of a company. And Ubiquiti is well positioned from a sales growth perspective too. The company's sales are expected to grow 23.2% this year versus the industry average of 1.1%.
Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The current-year earnings estimates for Ubiquiti have been revising upward. The Zacks Consensus Estimate for the current year has surged 5.6% over the past month.
Bottom LineUbiquiti has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination indicates that Ubiquiti is a potential outperformer and a solid choice for growth investors.
Key Takeaways UI benefits from healthy order trends, broad enterprise demand and stronger inventory planning.UI's wireless platforms support broadband, backhaul, routing, WLAN, video surveillance and M2M needs.R&D investments, UniFi upgrades and disruptive pricing help UI expand its market and support growth. Ubiquiti Inc. (UI - Free Report) employs a flexible global business model and community-driven operating structure to support growth across evolving networking markets. Its operating model is backed by a highly engaged network of service providers, distributors, value-added resellers, systems integrators and corporate IT professionals. Effective management of more than 100 distributors and master resellers has improved demand visibility and inventory planning. The company continues to benefit from healthy order trends and broad-based enterprise demand.
Key Growth Drivers of UIWith the wide proliferation of the Internet and exponential growth in demand for data traffic driven by bandwidth-intensive applications like video, audio, online gaming and social networking, the need for faster and seamless connectivity has increased manifold. To address these higher broadband access needs, wireless networks have emerged as an attractive alternative to traditional wired networks, as these require relatively lower capital investments and operating costs than the latter.
New York, NY-based Ubiquiti perfectly fits this bill with a comprehensive portfolio of networking products and solutions. Its service provider product platforms offer carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems and routing. Its enterprise product platforms provide wireless LAN infrastructure, video surveillance products and machine-to-machine communication components.
Operational Efficiency, R&D Focus Lend SupportUbiquiti aims to benefit from significant growth opportunities in both emerging and developed economies. These include a relentless pursuit by emerging countries to stay connected with the world through the adoption of wireless networking infrastructure as developed economies aim to bridge the demand-supply gap for higher bandwidth.
The company has made significant investments to optimize inventory levels by reducing lead times to support the increasing customer demand. Ubiquiti follows a scalable community-led approach based on product feedback from customers, while periodic reporting by channel partners has added to operational strength. We expect this resilient business model to contribute significantly to its growth momentum through disruptive price offerings.
In addition, Ubiquiti spends significantly on research and development (R&D) activities to develop innovative products and state-of-the-art technology to expand its addressable market and stay on the cutting edge of networking technology. The company believes its new product pipeline will help it increase average selling prices for high-performance, best-value products, thus boosting the top line. It upgraded the UniFi ecosystem, which includes hotspot analytics and high-density WLAN improvements and added new features to the AmpliFi product family.
The company’s product launches at disruptive prices helped it beat rivals to a great extent. Also, the reduction of labor-related costs is one of the chief highlights of the R&D initiatives. The company believes investments in R&D, inventory and operations management will help it expand the addressable market and maintain its dominant foothold in the industry.
Price PerformanceUbiquiti has surged 55.1% in the past year compared with the industry’s growth of 57.7%. It has outperformed peers like Ericsson (ERIC - Free Report) but lagged Nokia Corporation (NOK - Free Report) . While Ericsson has gained 45.1%, Nokia soared 179.2% over this period.
One-Year Stock Price Performance of UI
Image Source: Zacks Investment Research
Moving ForwardUbiquiti’s proprietary communication platform and community-led support structure help reduce operating costs while improving customer engagement and product deployment efficiency. The company has continued to optimize inventory levels and improve supply availability to support growing customer demand. With multiple secular growth drivers supporting demand, the company appears well-positioned to deliver sustainable long-term growth.
Ubiquiti currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
With a favorable Zacks Rank and healthy growth dynamics, Ubiquiti appears primed for further stock price appreciation. Consequently, investors are likely to profit if they bet on this high-flying stock now.
The ZacksWireless Equipment industry is poised to capitalize on the healthy demand trends driven by the rapid deployment of 5G and the transition to cloud and fiber networks. However, large-scale investments for seamless 5G evolution, margin erosion from price wars, higher customer inventory levels and inflated raw material costs owing to geopolitical conflicts, a challenging macroeconomic environment and uncertain business conditions might erode profitability.
Amid this backdrop, Motorola Solutions, Inc. (MSI - Free Report) , Ubiquiti Inc. (UI - Free Report) and Nokia (NOK - Free Report) are likely to profit from solid growth dynamics, supported by the widespread proliferation of IoT, fiber densification and shift to cloud services.
Industry Description The Zacks Wireless Equipment industry primarily comprises companies offering various networking solutions, wireless telecom products and related services for wireless voice and data communications through scalable modular platforms. Their product portfolio encompasses integrated circuit devices (chips) and system software for wireless voice and data communications, analog and digital two-way radio, satellite telecommunications, wireless networking and signal processing and end-to-end enterprise mobility solutions. The firms also provide a broad range of routing, switching and security products, video surveillance and machine-to-machine communication components that secure VPN appliances, enable intrusion detection and thwart data theft. Some firms even provide electronic warfare, avionics, robotics, advanced communications and maritime systems to the defense industry.
What's Shaping the Future of the Wireless Equipment Industry? Rapid Scaling: With operators moving toward converged or multi-use network structures, combining voice, video and data communications into a single network, the industry is increasingly developing solutions to support wireline and wireless network convergence. These investments are likely to help minimize service delivery costs to adequately support broadband competition and expand rural coverage and wireless densification in the long run. The industry players have enabled enterprises to rapidly scale communications functionalities to a vast range of applications and devices with easy-to-use software application programming interfaces. The firms support high user volumes without affecting deliverability and cost-effectively eliminate performance degradation.
Comprehensive Service Bouquet: The majority of the industry participants offer mission-critical communication infrastructure, devices, accessories, software and services that enable their customers to run businesses with increased efficiency and safety for their mobile workforce. These systems drive demand for additional device sales, software upgrades, infrastructure overhaul and expansion, as well as additional services to maintain, monitor and manage these complex networks and solutions. The comprehensive suite of services ensures continuity and reduces risks for constant critical communication operations.
Eroding Profits: Although higher infrastructure investments will eventually help minimize service delivery costs to support broadband competition and wireless densification, short-term profitability has largely been compromised. Margins are likely to be affected by the high cost of first-generation 5G products, profitability challenges in China, the Middle East war and volatility in crude oil prices. Uncertainty regarding chip shortage (albeit to a lesser extent) and supply-chain disruptions owing to tariff wars (leading to a dearth of essential fiber materials), shipping delays and scarcity of other raw materials due to geopolitical unrest are expected to affect the expansion and rollout of new broadband networks. Extended lead times for basic components might also hurt the delivery schedule and raise production costs. High customer inventory levels, owing to a challenging macroeconomic environment and volatile market conditions, pose another headwind for the companies.
Demand-Driven Operations Led by 5G, Fiber & Cloud: To maintain superior performance standards, there is a continuous need for network tuning and optimization, which creates demand for state-of-the-art wireless products and services. Moreover, a faster pace of 5G deployment is expected to augment the telecommunications industry's scalability, security and universal mobility and propel the wide proliferation of IoT. Expansion of fiber optic networks to support 4G LTE and 5G wireless standards, as well as wireline connections, is likely to act as a tailwind. The industry participants are enabling their customers to move away from an economy-of-scale network operating model to demand-driven operations and seamlessly migrate to 5G by offering easy programmability and flexible automation through steady infrastructure investments. The exponential growth of cloud networking solutions is further resulting in increased storage and computing on a virtual plane. As both consumers and enterprises use the network, there is tremendous demand for quality networking equipment.
Zacks Industry Rank Indicates Bullish Trends The Zacks Wireless Equipment industry is housed within the broader Zacks Computer and Technology sector. It carries a Zacks Industry Rank #44, which places it in the top 18% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bright prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Before we present a few wireless equipment stocks that are well-positioned to outperform the market based on a strong earnings outlook, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Outperforms S&P 500, Sector The Zacks Wireless Equipment industry has outperformed the S&P 500 composite and the broader Zacks Computer and Technology sector over the past year.
The industry has surged 73% over this period compared with the S&P 500 and sector’s growth of 33.9% and 49.4%, respectively.
One-Year IBM Stock Price Performance
Industry's Current Valuation On the basis of trailing 12-month Enterprise Value-to EBITDA (EV/EBITDA), which is the most appropriate multiple for valuing telecom stocks, the industry is currently trading at 32.77X compared with the S&P 500’s 17.16X. It is also trading above the sector’s trailing 12-month EV/EBITDA of 17.24X.
Over the past five years, the industry has traded as high as 35.87X, as low as 6.51X and at the median of 18.73X, as the chart below shows.
Trailing 12-Month Enterprise Value-to EBITDA (EV/EBITDA) Ratio
3 Wireless Equipment Stocks to Buy Motorola: Based in Chicago, IL, Motorola is a leading communications equipment manufacturer with a strong market position in bar code scanning, wireless infrastructure gear and government communications. As a leading provider of mission-critical communication products and services worldwide, the company has ensured a steady revenue stream from this niche market. It intends to boost its position in the public safety domain by entering into strategic alliances with other players in the ecosystem. Motorola is witnessing a robust demand for video security products and services and remains well poised to maintain this growth momentum with a diversified portfolio. The stock has gained 8.9% over the past year. The Zacks Consensus Estimate for current-year earnings has been revised 6% upward since April 2025. This Zacks Rank #2 (Buy) company has a long-term earnings growth expectation of 9.4%.
Price and Consensus: MSI
Ubiquiti: Headquartered in New York, Ubiquiti offers a comprehensive portfolio of networking products and solutions for service providers and enterprises. The company maintains a proprietary network communication platform committed to reducing operational costs by using a self-sustaining mechanism for rapid product support and dissemination of information. Ubiquiti aims to benefit from significant growth opportunities in both emerging and developed economies. These include a relentless pursuit by emerging countries to stay connected with the world through the adoption of wireless networking infrastructure, as developed economies aim to bridge the demand-supply gap for higher bandwidth. The stock has gained 198.7% over the past year. The Zacks Consensus Estimate for its current fiscal and next fiscal-year earnings has been revised 55.3% and 50.5% upward, respectively, since April 2025. Ubiquiti sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Price and Consensus: UI
Nokia: Finland-based Nokia has emerged as one of the leading players in the development of advanced 5G technology and is at the forefront of extending 5G use cases in various industries. It has laid a strong foundation of innovation through substantial infrastructure investments. This has led to the establishment of an impressive portfolio comprising approximately 26,000 patent families, including more than 8,000 patent families that are deemed crucial to 5G technology. Nokia is well-positioned for the ongoing technology cycle given the strength of its end-to-end portfolio. This Zacks Rank #2 firm has a long-term earnings growth expectation of 7.5%. The stock has gained 88.4% over the past year.
NVIDIA's NASDAQ: NVDA latest GTC conference reminded investors of something easy to forget: this company is still accelerating. But the real opportunity may not be in NVIDIA itself—it's in the companies feeding the infrastructure machine that NVIDIA's growth demands. Growth investor Louis Navellier, founder of InvestorPlace's Growth Investor newsletter, sees four names positioned to keep climbing as data center buildouts intensify.
The thesis is straightforward: AI infrastructure has bottlenecks, and bottlenecks create winners.
Get Micron Technology alerts:
At GTC, NVIDIA unveiled further details on its Vera Rubin platform—a next-generation architecture combining six new chips designed to slash inference costs and training times compared to the current Blackwell generation. Systems are expected to ship in the second half of 2026, with Rubin Ultra following in 2027. That kind of roadmap doesn't just benefit NVIDIA. It pulls an entire ecosystem forward—memory, storage, networking, and switching companies that keep the data center engine running.
Micron's Memory Dominance Is Just Getting Started Micron Technology NASDAQ: MU sits at the center of that ecosystem. The Boise-based chipmaker posted record fiscal Q1 2026 revenue of $13.64 billion, up more than 56% year over year, driven by surging demand for high-bandwidth memory chips powering AI data centers. Full-year fiscal 2025 revenue came in at $37.4 billion, with the company forecasting continued sequential growth.
Micron Technology Today
MU
Micron Technology
$985.15 -10.72 (-1.08%)
As of 10:40 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$103.38▼
$1,089.29Dividend Yield0.06%
P/E Ratio46.96
Price Target$737.63
Navellier calls Micron one of the most powerful stocks in his portfolio.
The reason comes down to institutional accumulation and persistent upward analyst revisions—two forces that tend to feed on each other.
Micron competes primarily with Samsung OTCMKTS: SSNLF in the high-speed memory space, and right now it's winning that race.
The stock's 52-week range stretches from $61.54 to $471.34, reflecting just how dramatically sentiment has shifted.
Seagate Is the Storage Bottleneck Play Seagate Technology NASDAQ: STX tells a similar story from the storage side. Fiscal year 2025 revenue hit $9.1 billion, a nearly 39% jump from the prior year, and the company's Q2 fiscal 2026 earnings came in at $3.11 per share—beating estimates by more than 9%. Seagate's 52-week low of $63.19 now looks like a distant memory, with shares trading above $400.
Seagate Technology Today
STX
Seagate Technology
$922.27 +54.18 (+6.24%)
As of 10:40 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$124.63▼
$966.80Dividend Yield0.32%
P/E Ratio87.81
Price Target$820.63
What changed? Data center storage became a bottleneck. As facilities scaled to meet AI demand, memory and disc drive companies that had been trading at modest valuations suddenly found themselves at the center of institutional buying pressure.
Navellier notes that Seagate's forward P/E ratio remains reasonable relative to its growth trajectory, which continues to attract large investors.
The question every investor should ask: does the momentum last? Navellier believes 2026 looks strong based on current order backlogs, but cautions that earnings deceleration could begin surfacing in 2027 as initial buildout demand levels off. That makes timing and discipline critical for investors riding this wave.
Ciena's Optical Edge Is Gaining Institutional Attention Ciena NYSE: CIEN may be the least familiar name on this list, but the numbers say it's worth attention. The optical networking company posted fiscal Q1 2026 revenue of $1.43 billion—up 33% year over year—with adjusted earnings per share surging 111%. Management raised full-year fiscal 2026 revenue guidance to a range of $5.9 billion to $6.3 billion, representing roughly 28% growth at the midpoint.
Ciena Today
$450.61 +5.39 (+1.21%)
As of 10:40 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$71.72▼
$637.51P/E Ratio150.20
Price Target$530.56
Ciena's recent addition to the S&P 500 in February 2026 is a milestone that could reduce the stock's historically rabbit-like volatility.
As Navellier puts it, the stock tends to "sit, then hop." S&P 500 inclusion should bring steadier institutional accumulation, which often smooths out those sharp moves.
The growth catalyst is clear: as data centers scale to 10-gigabit speeds and beyond, optical upgrades become non-negotiable. Ciena specializes in the high-speed optical connections that make those upgrades possible, and its record $5 billion backlog entering fiscal 2026 suggests demand visibility stretches well into 2027.
Ubiquiti Bridges the Gap Between Enterprise and Consumer Ubiquiti Today
UI
Ubiquiti
$595.74 +13.97 (+2.40%)
As of 10:40 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$368.42▼
$1,099.99Dividend Yield0.54%
P/E Ratio38.39
Price Target$750.67
Ubiquiti NYSE: UI rounds out the list with a different angle. The company sells networking switches and equipment to both data center operators and consumers upgrading their home internet setups. Its fiscal Q2 2026 results showed revenue of $814.9 million and earnings of $3.88 per share, crushing estimates on both counts.
The consumer story matters here. As internet speeds accelerate—moving from one-gigabit to 2.5 and eventually 10 gigabits—existing home networking hardware becomes obsolete. That creates a replacement cycle that runs alongside, not instead of, the institutional data center demand.
The Bottleneck That Keeps on Giving The pattern across all four names is the same: AI infrastructure demand creates bottlenecks, bottlenecks attract institutional capital, and institutional capital drives persistent buying pressure. That cycle has room to run through 2026. But Navellier's caution about potential 2027 deceleration is worth keeping close—because when the bottleneck clears, so does the urgency behind these trades. Investors watching this space should stay focused on earnings revisions and order backlogs. Those are the signals that tell you whether the cycle is still accelerating—or starting to cool.
Should You Invest $1,000 in Micron Technology Right Now?Before you consider Micron Technology, you'll want to hear this.
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Key Takeaways DuPont breaks ROE into margin, turnover & leverage for deeper stock insights.Identifies quality earnings vs debt-driven ROE, avoiding misleading signals.MAMA, UI, ELA, ECG & CASY screen strong on profitability and efficiency. Return on equity (ROE) is one of the most favored metrics of investors. It is a profitability ratio that measures earnings generated by a company from its equity. Investors can follow the ROE trend in companies and compare this to historical or industry benchmarks to pick a winning stock.
However, stepping beyond the basic ROE and analyzing it at an advanced level could lead to even better returns. Here is where the DuPont analysis comes into play. It is an analytical method that examines three major elements – operating management, management of assets and the capital structure – related to the financial condition of a company. Below, we show how DuPont breaks down ROE into its different components:
ROE = Net Income/Equity
Net Income / Equity = (Net Income / Sales) * (Sales / Assets) * (Assets / Equity)
The screener yields winning stocks Mama's Creations Inc. (MAMA - Free Report) , Ubiquiti (UI - Free Report) , Envela (ELA - Free Report) , Everus Construction Group Inc. (ECG - Free Report) and Casey's General Stores (CASY - Free Report) .
Why Use DuPont?Although one can’t play down the importance of normal ROE calculation, the fact remains that it doesn’t always provide a complete picture. The DuPont analysis, on the other hand, allows investors to assess the elements that play a dominant role in any change in ROE. It can help investors to segregate companies having higher margins from those with high turnover. For example, high-end fashion brands generally survive on a high margin as compared with retail goods, which rely on higher turnover.
In fact, it also sheds light on the company’s leverage status, which can go a long way in selecting stocks poised for gains. A lofty ROE could be due to the overuse of debt. Thus, the strength of a company can be misleading if it has a high debt load.
So, an investor confined solely to an ROE perspective may be confused if he or she has to judge between two stocks of equal ratio. This is where DuPont analysis wins over and spots the better stock.
Investors can simply do this analysis by taking a look at the company’s financials.However, looking at financial statements of each company separately can be a tedious task. Screening tools like Zacks Research Wizard can come to your rescue and help you shortlist the stocks that look impressive with a DuPont analysis.
Screening Parameters• Profit Margin more than or equal to 3: As the name suggests, it is a measure of how profitably the business is running. Generally, it is the key contributor to ROE.
• Asset Turnover Ratio more than or equal to 2: It allows an investor to assess management’s efficiency in using assets to drive sales.
• Equity Multiplier between 1 and 3: It’s an indication of how much debt the company uses to finance its assets.
• Zacks Rank less than or equal to 2: Stocks having a Zacks Rank #1 (Strong Buy) or 2 (Buy) generally perform better than their peers in all types of market environments.
• Current Price more than $5: This screens out the low-priced stocks. However, when looking for lower-priced stocks, this criterion can be removed.
Here are five out of eight stocks that made it through the screen:
Mama's Creations: The Zacks Rank #1 company is a marketer and manufacturer of fresh deli prepared foods which serves grocery, mass, club and convenience stores. You can see the complete list of today’s Zacks #1 Rank stocks here.
The average earnings surprise of MAMA for the past four quarters is 133.33%.
Ubiquiti: The Zacks Rank #1 company along with its subsidiaries, offers a comprehensive portfolio of networking products and solutions for service providers and enterprises.
The average earnings surprise of UI for the past four quarters is 55.34%.
Envela: The Zacks Rank #2 company is providing a full spectrum of construction services through its electrical and mechanical and transmission and distribution specialty contracting services principally in United States.
The average earnings surprise of ELA for the past four quarters is 135.56%.
Everus Construction Group Inc.: The Zacks Rank #2 company is providing a full spectrum of construction services through its electrical and mechanical and transmission and distribution specialty contracting services principally in United States.
The average earnings surprise of ECG for the past four quarters is 66.33%.
Casey's General Stores: The Zacks Rank #2 company operates convenience stores under the Casey's and Casey's General Store names in 19 states, mainly Iowa, Missouri and Illinois.
The average earnings surprise of CASY for the past four quarters is 19.95%.
Diversify Advisory Services LLC boosted its stake in shares of Ubiquiti Inc. (NYSE:UI – Free Report) by 38.6% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 2,323 shares of the company’s stock after purchasing an additional 647 shares during the quarter. Diversify Advisory Services LLC’s holdings in Ubiquiti were worth $1,279,000 at the end of the most recent quarter.
Several other large investors have also recently bought and sold shares of UI. Goldman Sachs Group Inc. raised its stake in Ubiquiti by 33.8% during the 1st quarter. Goldman Sachs Group Inc. now owns 33,836 shares of the company’s stock valued at $10,494,000 after purchasing an additional 8,551 shares during the last quarter. Woodline Partners LP raised its stake in Ubiquiti by 22.1% during the 1st quarter. Woodline Partners LP now owns 1,214 shares of the company’s stock valued at $377,000 after purchasing an additional 220 shares during the last quarter. Jane Street Group LLC raised its stake in Ubiquiti by 12.9% during the 1st quarter. Jane Street Group LLC now owns 13,768 shares of the company’s stock valued at $4,270,000 after purchasing an additional 1,570 shares during the last quarter. Cetera Investment Advisers acquired a new position in shares of Ubiquiti in the 2nd quarter valued at $312,000. Finally, Legal & General Group Plc raised its stake in shares of Ubiquiti by 23.2% in the 2nd quarter. Legal & General Group Plc now owns 792 shares of the company’s stock valued at $326,000 after buying an additional 149 shares in the last quarter. 4.00% of the stock is currently owned by institutional investors and hedge funds.
Ubiquiti Stock Performance Shares of UI stock opened at $925.21 on Monday. Ubiquiti Inc. has a 52-week low of $282.82 and a 52-week high of $931.60. The stock has a market cap of $55.99 billion, a price-to-earnings ratio of 63.03 and a beta of 1.32. The firm has a fifty day moving average of $756.92 and a 200-day moving average of $664.69.
Ubiquiti (NYSE:UI – Get Free Report) last posted its earnings results on Friday, February 6th. The company reported $3.88 earnings per share for the quarter, topping the consensus estimate of $3.08 by $0.80. Ubiquiti had a net margin of 29.90% and a return on equity of 113.21%. The business had revenue of $814.87 million for the quarter, compared to analyst estimates of $716.95 million. During the same quarter in the prior year, the firm earned $2.28 EPS. The firm’s quarterly revenue was up 35.8% compared to the same quarter last year. On average, sell-side analysts predict that Ubiquiti Inc. will post 7.21 earnings per share for the current year.
Ubiquiti Announces Dividend The company also recently announced a quarterly dividend, which was paid on Monday, February 23rd. Stockholders of record on Tuesday, February 17th were issued a $0.80 dividend. The ex-dividend date of this dividend was Tuesday, February 17th. This represents a $3.20 annualized dividend and a dividend yield of 0.3%. Ubiquiti’s dividend payout ratio is presently 21.80%.
Wall Street Analyst Weigh In A number of equities analysts have recently issued reports on the stock. Wall Street Zen cut shares of Ubiquiti from a “buy” rating to a “hold” rating in a research note on Saturday. Barclays increased their price objective on shares of Ubiquiti from $455.00 to $527.00 and gave the company an “underweight” rating in a research note on Friday, February 6th. BWS Financial restated a “buy” rating and issued a $720.00 price objective on shares of Ubiquiti in a research note on Monday, February 9th. Finally, Weiss Ratings upgraded shares of Ubiquiti from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Monday, March 23rd. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $615.67.
Check Out Our Latest Stock Analysis on UI
About Ubiquiti (Free Report)
Ubiquiti Inc (NYSE: UI) is a U.S.-based technology company that designs and sells networking and wireless communication products for enterprise, service provider and consumer markets. Its product portfolio includes Wi‑Fi access points, routers and gateways, managed Ethernet switches, network management software, and IP surveillance systems. Ubiquiti’s offerings are organized under several well‑known lines—most notably UniFi for managed LAN/Wi‑Fi and networked video, AmpliFi for consumer Wi‑Fi, and product families targeting service‑provider and point‑to‑point wireless broadband applications.
The company emphasizes integrated hardware and software solutions, with centralized management and cloud‑enabled control as core features of its platform approach.
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For Immediate ReleasesChicago, IL – April 21, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Tesla (TSLA - Free Report) , Ciena (CIEN - Free Report) , Ubiquiti (UI - Free Report) , Imperial Oil (IMO - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:Oil Prices & Share Prices: Global Week AheadWhat happens across this Global Week Ahead?
Financial markets are in a buoyant mood, as U.S. President Trump signals confidence that the war in Iran will end soon, with talks probably in the cards again.
That optimism may be tested — by a batch of macro data — likely to show stuttering business activity and growing price pressures.
Alongside this spring macro data arrives a potentially bruising Congressional grilling — for the Federal Reserve's prospective new chair.
Next are Reuters’ five world market themes, re-ordered for equity traders—(1) Where Does the Price of a Barrel of Oil Go? Do Stocks Care?Iran remains the dominant market risk as the U.S. and Pakistan talk up the prospects for a deal to end the conflict and open the crucial Strait of Hormuz.
Stocks, especially in the U.S., had been betting on a happy outcome.
The S&P500, has bounced back to record highs, and, despite worries about Japan's heavy reliance on energy imports, the Nikkei, is also at a record.
Traders were wagering that peace will allow a rerun of the pre-war playbook where strong earnings supported stocks.
Oil markets are less convinced.
Benchmark Brent crude may be below $100 a barrel, but not by much, and it's still 33% above late February levels.
Even more striking, prices of physical crude for delivery are at records.
Should talks fail to open the Strait, energy prices will remain high, forcing central banks to keep borrowing costs elevated and threatening corporate earnings.
(2) Fresh Surveys of Spring Business Activity May Be GloomyThe coming week brings a first look at how companies around the world were coping as the Iran war passed the one-month mark in April.
Surveys for March showed a steep rise in input costs and a slowdown in overall business activity, as firms everywhere grappled with volatile energy markets, disrupted supply chains and a dizzying news cycle.
Even though oil prices have eased, the threat of a global inflation shock has diminished, but not disappeared.
First-quarter earnings, especially in imported energy-dependent Europe, are showing airlines, retailers and manufacturers grappling with deep uncertainty that could weigh on profits.
The United States, a net energy exporter, is relatively insulated but not immune from the effects of higher fuel prices. Investors will look closely at the prices and employment components of the upcoming purchasing managers' indices (PMIs) for signs of stress.
Inflation figures from Japan, Britain, New Zealand and Canada are also unlikely to paint a pretty picture.
(3) Asian Central Banks, in Particular, Struggle with the Strait of Hormuz CrisisCentral banks in emerging Asia will feel the pinch too.
China sets its loan prime rate on April 20th, though analysts see the central bank keeping its benchmark unchanged through the end of the year as the economy regains momentum.
Even if growth is expected to cool as the effects of the Middle East crisis hit corporate profits and overseas demand, Asia's largest economy is still better off than many.
Bank Indonesia, which meets on April 22, must defend a rupiah that has recently fallen to record lows. The central bank governor recently said it needs a recalibration of policy to support financial market stability.
Meanwhile, the Philippines' central bank, which meets on April 23, has warned of 'spillover effects' after inflation accelerated in March and breached policymakers' target range.
(4) Turkey’s Central Bank MeetsTurkey's central bank holds one of its most consequential policy meetings on Wednesday, providing a litmus test of its commitment to orthodox monetary policy.
Given its huge dependence on imported energy, the country has been among the hardest hit by the economic blowback of the Iran war.
It burned through nearly $50 billion of its reserves to keep the lira stable last month and was one of the few nations to see its credit rating outlook cut.
The prospect of a durable ceasefire will certainly be part of the discussion.
But with inflation still likely to be nearly +30% by the end of the year now according to economists, the likes of JP Morgan and Bank of America expect rates to be hiked 300 basis points back to a bruising 40%.
(5) U.S. Federal Reserve Chair Appointment in the SpotlightInvestors will learn more about Trump's pick to lead the Federal Reserve when former Fed Governor Kevin Warsh appears before Congress for his confirmation hearing on April 21st.
Warsh steps into a tricky backdrop to achieve Trump's desire for lower rates, with the Iran war's energy-price surge driving concerns about higher inflation.
Fed funds futures have swung from pricing in two quarter-point cuts by December to virtually none since the war started in late February.
Trump has openly vented his frustration at current Chair Jerome Powell for not having lowered rates more.
This week, he escalated his pressure campaign, threatening to fire Powell from his separate Fed board seat if he doesn't leave when his term as Chair ends on May 15.
Elsewhere, Tesla, headlines a packed for U.S. corporate earnings, while March retail sales data could shed light on whether higher prices are hurting consumer spending.
Zacks #1 Rank (STRONG BUY) StocksNext are three provocative fresh Zacks #1 (STRONG BUY) large-cap stocks.
(1) Ciena: This is a $495 a share tech stock, with a market cap of $70.0B.It is found in the Zacks Communication Components industry. The stock holds a Zacks Value score of F, a Zacks Growth score of B, and a Zacks Momentum score of A.
F12M P/E: 77.8.
Ciena Corp. is a leading provider of optical networking equipment, software and services.
Its reporting segments are: Networking Platforms, Platform Software & Services, Blue Planet Automation Software & Services, and Global Services.
The Networking Platforms segment includes networking solutions optimized for the convergence of coherent optical transport, Optical Transport Network switching and packet switching.
Its products include the 6500 packet-optical platform, the Waveserver family of products, 6500 Reconfigurable Line System, 5400 family of packet-optical platforms and coherent-optimized edge line system, the 3900 family of service delivery switches and service aggregation switches and the 5000 series of service aggregation platforms.
The Platform Software & Services segment provides domain control management, analytics data and planning tools.
Blue Planet is a comprehensive, cloud native and standards-based software portfolio that enables customers to realize their digital transformation.
(2) Ubiquiti: This is a $1,039 a share tech stock, with a market cap of $62.9B.It is found in the Zacks Wireless Equipment industry. The stock holds a Zacks Value score of F, a Zacks Growth score of C, and a Zacks Momentum score of D.
F12M P/E: 71.1.
Ubiquiti Inc. offers a comprehensive portfolio of networking products and solutions for service providers and enterprises.
Its products offer carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems and routing, wireless local area network infrastructure, video surveillance & machine-to-machine communication components.
It offers high-performance radios, antennas, software, communications protocols and management tools that are designed to deliver carrier and enterprise class wireless broadband access and other services primarily in the unlicensed radio frequency spectrum.
It has 2 different product categories, namely, Service Provider Technology and Enterprise Technology.
The Service Provider Technology segment: Includes airMAX, airFiber and EdgeMAX embedded radio and antenna product lines. This segment also includes products like base stations, radios, backhaul equipment and Customer Premise Equipment.
The Enterprise Technology segment: Includes UniFi and mFi product lines.
(3) Imperial Oil: This is a $125 a share Canadian oil stock, with a market cap of $60.8B.It is found in the Zacks Oil & Gas-Integrated industry. The stock holds a Zacks Value score of C, a Zacks Growth score of C, and a Zacks Momentum score of A.
F12M P/E: 14.7.
Imperial Oil Ltd is mainly engaged in the oil & gas production, petroleum products refining and marketing and chemical business.
It is Canada's largest jet fuel supplier & a major producer of asphalt. It primarily operates under three segments: Upstream, Downstream and Chemical.
The Upstream unit: Involved in the exploration and production of crude and synthetic oil, bitumen and natural gas. Imperial Oil primarily focuses on three main assets in Alberta - the Syncrude oil sands joint venture with Suncor Energy, the Aspen, & the Kearl oil sands projects. Its upstream assets have a proved reserve life of nearly 30 years.
The Downstream segment: Deals with the refining of crude oil along with distribution and marketing of refined products. The unit is engaged with the selling of petroleum products under the Esso & Mobil brands with 1,800 retail sites.
The Chemical segment: Concerned with the manufacture and marketing of various petrochemicals including plasticizers, polyethylene resins, benzene among others.
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Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Previewreports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Key Takeaways Ubiquiti is expected to post Q3 revenue growth driven by Enterprise Technology demand.UI's Enterprise Technology revenue estimate rose to $675.06M from $585.72M last year.Ubiquiti beat earnings estimates in the last 4 quarters with a trailing surprise of 55.34%. Ubiquiti, Inc. (UI - Free Report) is set to report third-quarter fiscal 2026 results on May 8, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 38.08%. In the trailing four quarters, the company delivered an earnings surprise of 55.34%, beating estimates on all occasions. Ubiquiti is expected to report year-over-year revenue growth backed by solid demand in the Enterprise segment.
Factors at PlayUbiquiti offers a comprehensive portfolio of networking products and solutions for service providers and enterprises. Its service-provider product platforms offer carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems and routing.
The Enterprise Technology segment remains the biggest driver for the company. The growing proliferation of IoT devices across industries is propelling growth in this segment. The company spends significantly on research and development (R&D) activities for developing innovative products and state-of-the-art technology to expand its addressable market and remain at the cutting edge of networking technology. The company believes its new product pipeline will help it increase average selling prices for high-performance, best-value products, thus raising the top line.
For the fiscal third quarter, the Zacks Consensus Estimate for the Enterprise Technology vertical is pegged at $675.06 million, up from $585.72 million a year ago. Service Provider technology is projected to report revenues of $80.9 million, up from $81.68 million a year ago.
For the March quarter, the Zacks Consensus Estimate for total revenues is pegged at $785.13 million, suggesting an increase from the year-ago quarter’s reported figure of $664.17 million. The consensus estimate for adjusted earnings per share is pegged at $3.18, implying growth from $3 reported in the prior year.
Earnings WhispersOur proven model does not conclusively predict an earnings beat for Ubiquiti for the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: UI carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to ConsiderHere are some stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Cisco Systems, Inc. (CSCO - Free Report) is set to release its second-quarter 2026 numbers on May 13. It has an Earnings ESP of +1.92% and carries a Zacks Rank #2 at present.
The Earnings ESP for Keysight Technologies, Inc. (KEYS - Free Report) is +0.86%, and it sports a Zacks Rank of 1 at present. The company is scheduled to report second-quarter 2026 numbers on May 19.
The Earnings ESP for Motorola Solutions (MSI - Free Report) is +0.72%, and it carries a Zacks Rank of 3 at present. The company is scheduled to report first-quarter 2026 numbers on May 7.
NEW YORK--(BUSINESS WIRE)--Ubiquiti Inc. (NYSE: UI) ("Ubiquiti" or the "Company") today announced its financial results for the third quarter ended March 31, 2026. Third Quarter Fiscal 2026 Financial Summary Revenues of $788.2 million GAAP diluted EPS of $3.86 Non-GAAP diluted EPS of $3.88 Additional Financial Highlight The Company's Board of Directors declared a $0.80 per share cash dividend payable on May 26, 2026 to shareholders of record at the close of business on May 18, 2026. Financial H.
Ubiquiti Inc. (UI - Free Report) came out with quarterly earnings of $3.88 per share, beating the Zacks Consensus Estimate of $3.18 per share. This compares to earnings of $3 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +22.01%. A quarter ago, it was expected that this computer networking company would post earnings of $2.81 per share when it actually produced earnings of $3.88, delivering a surprise of +38.08%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Ubiquiti, which belongs to the Zacks Wireless Equipment industry, posted revenues of $788.2 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.39%. This compares to year-ago revenues of $664.17 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Ubiquiti shares have added about 67.5% since the beginning of the year versus the S&P 500's gain of 7.2%.
What's Next for Ubiquiti?While Ubiquiti has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Ubiquiti was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.63 on $840.87 million in revenues for the coming quarter and $14.15 on $3.17 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Wireless Equipment is currently in the bottom 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, ViaSat (VSAT - Free Report) , is yet to report results for the quarter ended March 2026.
This provider of satellite and wireless networking technology is expected to post quarterly earnings of $0.25 per share in its upcoming report, which represents a year-over-year change of +1350%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
ViaSat's revenues are expected to be $1.2 billion, up 4.5% from the year-ago quarter.
Key Takeaways UI Q3 revenues rose 18.7% year over year, fueled by UniFi demand and Enterprise Technology growth.UI posted non-GAAP EPS of $3.88, beating estimates by 70 cents on strong sales growth.Ubiquiti generated $630.1M in operating cash flow in the first nine months of fiscal 2026. Ubiquiti Inc. (UI - Free Report) reported strong third-quarter fiscal 2026 results, with both bottom and top lines surpassing the Zacks Consensus Estimate.
The New York-based networking products and solutions provider reported an 18.7% year-over-year increase in revenues, driven mainly by strong demand for its UniFi networking products and growth in its Enterprise Technology segment, with higher sales across all regions.
Net IncomeNet income, on a GAAP basis, in the quarter was $233.9 million or $3.86 per share compared with $180.4 million or $2.98 per share in the year-ago quarter. Despite higher operating expenses, solid top-line growth boosted the bottom line.
Non-GAAP net income in the quarter was $235.1 million or $3.88 per share compared with $181.8 million or $3 per share in the year-earlier quarter. The bottom line beat the Zacks Consensus Estimate by 70 cents.
RevenuesNet sales in the quarter increased to $788.2 million from $664.2 million in the prior-year quarter, driven by higher revenues from the Enterprise Technology segment, contributing 91.1% of total sales. The top line beat the Zacks Consensus Estimate of $785 million.
Enterprise Technology generated $717.9 million in revenues, up from $585.7 million in the prior-year quarter, led by an increase in revenues across all regions.
Service Provider Technology registered $70.3 million in revenues, down from $78.4 million in the year-ago quarter due to a decrease in revenues across all regions except North America and South America.
Region-wise, revenues from North America were $410.2 million compared with $322.7 million in the year-ago quarter. Net sales from Europe, the Middle East and Africa aggregated $303.8 million, up from $282.1 million. Asia Pacific revenues increased to $43.2 million from $37.5 million in the year-earlier quarter. Revenues from South America were $31.1 million, up from $21.8 million a year ago.
Other DetailsDuring the March quarter, gross profit was $370.7 million compared with $295.9 million in the year-ago quarter, with respective margins of 47% and 44.5% due to favorable product mix, lower shipping costs, and reduced charges for excess and obsolete inventory. Higher tariffs partially reversed this positive trend.
The operating expenses increased to $79.9 million from the prior-year figure of $69 million due to higher employee-related costs, credit card processing fees from stronger webstore sales, professional fees, software and marketing expenses, partly offset by lower depreciation and facility costs. Operating income was $290.8 million, up from $226.9 million in the prior year.
Cash Flow & LiquidityDuring the first nine months of fiscal 2026, Ubiquiti generated $630.1 million of cash in operating activities, up from $509.7 million in the prior-year period. As of March 31, 2026, the company had $368.7 million in cash and cash equivalents, with $56 million of other long-term operating lease liabilities.
Zacks RankUbiquiti currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming ReleasesKeysight Technologies, Inc. (KEYS - Free Report) is scheduled to release second-quarter fiscal 2026 earnings on May 19. The Zacks Consensus Estimate for earnings is pegged at $2.33 per share, suggesting growth of 37.06% from the year-ago reported figure.
Keysight has a long-term earnings growth expectation of 17.45%. The company delivered an average earnings surprise of 4.58% in the last four reported quarters.
Workday, Inc. (WDAY - Free Report) is set to release first-quarter fiscal 2027 earnings on May 21. The Zacks Consensus Estimate for earnings is pegged at $2.49 per share, implying growth of 11.7% from the year-ago reported figure.
Workday has a long-term earnings growth expectation of 20.16%. The company delivered an average earnings surprise of 8.53% in the last four reported quarters.
Analog Devices, Inc. (ADI - Free Report) is set to release second-quarter fiscal 2026 earnings on May 20. The Zacks Consensus Estimate for earnings is pegged at $2.88 per share, implying growth of 55.7% from the year-ago reported figure.
Analog Devices has a long-term earnings growth expectation of 21.89%. The company delivered an average earnings surprise of 6.11% in the last four reported quarters.
On May 11, 2026, Ubiquiti Inc (UI) shares fell 12.3% today, closing at $738.61. The stock has experienced significant fluctuations, with a 52-week range of $362
Ubiquiti’s NYSE: UI business is strong and drives value for its investors. However, some factors suggest its stock price will remain under pressure for the foreseeable future. The primary is short interest, which is high and rising, about 15% as of late April, and sufficient to present a headwind or worse, in the right conditions. As it stands, conditions favor short sellers, suggesting a deeper decline than already seen is possible in 2026.
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Not Much Support for UI StockInstitutional and analyst trends are bullish for this market, with signs of accumulation and upside potential. The consensus is Hold, there is a 50% Buy-side bias, and the revision trend is positive, indicating a $980 price point at the high end. The high-end is where the problem begins, as the market exceeded it in early April, setting up the price correction that followed. The problem is compounded by tepid analyst coverage: only four analysts who cover this stock are tracked by MarketBeat, suggesting smart money is flowing to other investments.
Ubiquiti Today
UI
Ubiquiti
$595.74 +13.97 (+2.40%)
As of 10:40 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$368.42▼
$1,099.99Dividend Yield0.54%
P/E Ratio38.39
Price Target$750.67
Institutions are accumulating Ubiquiti stock, and the trend is robust, running a trailing 12-month pace of nearly $3-to-$1, and activity is ramping higher sequentially. However, like the analysts, institutional interest is tepid, verging on cold, with only 4% of shares accounted for.
The takeaway for investors is that there is simply no market support for this stock beyond retail investors, and even they have issues.
Trading at 55X the current-year earnings outlook, Ubiquiti isn’t a cheap stock, and even the forward-looking price-to-earnings forecasts are still high. The stock falls into the 30X range within two years, but this requires careful execution, as growth is largely priced in. In this environment, missteps, unseen hurdles, and weak results are the catalysts for volatility and stock price contractions, as reflected in the stock price activity. The question, however, is whether Ubiquiti is buyable at lower levels, and the answer is yes. The quality business is growing, underpinned by AI.
Ubiquiti is a networking specialist favored by “prosumers” (tech-savvy home users) and small-to-medium-sized businesses. Among the attractions are ease of use, modular design, scalability, and a cost structure that enables single-point control without cumbersome licensing fees. Today's catalysts include the widening use of digital and the AI upgrade cycle, which enables new and improved IoT/edge capabilities quarterly. Users can set up and manage Wi-Fi connections, including security cameras, to ensure reliable whole-home/business automation.
Ubiquiti Fell Short of a High Bar in Q3 2026Ubiquiti’s fiscal Q3 was not a bad quarter, far from it, but it fell substantially short of expectations, triggering the market to sell off. The company reported $788.2 million in net revenue, up nearly 19% compared to the prior year, but short of the $788.50 bar set by analysts due to weakness in the Service Provider Segment. Enterprise Technology grew by 22%, but Service Provider offset it.
Margin news was an equally mixed bag. The company widened its margin, sustaining strength through to the bottom line, with gross margin up 250 basis points, income from ops up 28%, adjusted net income up 29.3%, and earnings per share up 30%. The sticking point is that earnings fell short os the consensus by 41 cents, undermining confidence in the longer-term forecasts.
No guidance is another sticking point. The market can overlook many things, but no guidance raises uncertainty to unsustainable levels. In this scenario, the best choice is to move to the sidelines and wait and see what happens next. Growth is expected, but, as proved in Q1, expectations may be set too high. Catalysts include a move into high-end enterprise networking and memory, as well as new products. New products raise the bar across the portfolio, underpinning the growth outlook, including tools enabling self-hosted data storage.
Headwinds and Hurdles for Ubiquiti Stock Price ActionHeadwinds include regulatory challenges. Restrictions on, or potential restrictions on, foreign-made networking hardware threaten to undermine the business model. The company relies on contract manufacturing with much of the footprint in China, a target of government ire. Restrictions or bans may disrupt the supply chain, increase costs, and prevent meeting demand.
The stock price action is mixed, with the near-term trend decidedly down and the longer-term trend still up, suggesting a buying opportunity is in the making. The critical support target is the 150-day exponential moving average (EMA), which has triggered a rebound several times in the past.
A move below this level would be a bearish signal, potentially leading to another 20% decline, but such a move is unanticipated. The more likely scenario is that this market consolidates near the EMA and then begins advancing sometime later in the year.
Should You Invest $1,000 in Ubiquiti Right Now?Before you consider Ubiquiti, you'll want to hear this.
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Large-cap stocks tied to housing, nuclear energy, crypto mining and global commodities led Wall Street's biggest declines last week as investors reacted to earnings volatility, macro uncertainty and sector-specific pressure.
Rising Treasury yields, Middle East conflict concerns, weaker crypto sentiment and cautious outlooks weighed on several momentum-driven names despite some companies posting strong quarterly results.
These ten large-cap stocks were the worst performers last week. Are they a part of your portfolio?
Ubiquiti Inc. (NYSE:UI) slumped 14.62% this week after the company reported worse-than-expected third-quarter financial results.
JBS N.V. (NYSE:JBS) fell 17.05% this week after the company reported mixed first-quarter financial results. Also, Barclays lowered its price forecast on the stock from $23 to $21.
Korea Electric Power Corporation (NYSE:KEP) decreased 11.92% this week.
Rocket Companies, Inc. (NYSE:RKT) decreased 13.31% this week after the company reported better-than-expected first-quarter financial results.
AngloGold Ashanti (NYSE:AU) slumped 16.41% this week.
Carvana Co. (NYSE:CVNA) decreased 13.65% this week. BTIG analyst Marvin Fong maintains a Buy rating, lowering the price forecast from $485 to $97.
IREN Limited (NASDAQ:IREN) fell 3.3% this week. Shares of crypto-related companies traded lower as the price of Bitcoin drops below $80,000.
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SAN DIEGO--(BUSINESS WIRE)---- $UI #HAEclassaction--Haeggquist & Eck, LLP Investigates Ubiquiti Inc.'s Directors and Officers for Breach of Fiduciary Duties.
On May 22, 2026, Ubiquiti Inc (UI) shares rose 4.2% to a current price of $610.81. The stock has experienced significant volatility, trading within a 52-week ra
Ubiquiti Inc. (UI - Free Report) has been on a downward spiral lately with significant selling pressure. After declining 42.7% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.
We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.
RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.
Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.
So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefiting from the inevitable rebound.
However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.
Why a Trend Reversal is Due for UIThe RSI reading of 25.1 for UI is an indication that the heavy selling could be in the process of exhausting itself, so the stock could bounce back in a quest for reaching the old equilibrium of supply and demand.
The RSI value is not the only factor that indicates a potential turnaround for the stock in the near term. On the fundamental side, there has been strong agreement among the sell-side analysts covering the stock in raising earnings estimates for the current year. Over the last 30 days, the consensus EPS estimate for UI has increased 5.6%. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.
Moreover, UI currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Ubiquiti Inc. (UI - Free Report) Headquartered in New York, Ubiquiti Inc., along with its subsidiaries, offers a broad portfolio of networking products and solutions for service providers, enterprises and consumers. Its service-provider platforms offer carrier-class infrastructure for fixed wireless broadband, wireless backhaul systems and routing, while enterprise platforms provide wireless local area network infrastructure, video surveillance products, switching and routing solutions, security gateways and door access systems. The company was earlier known as Ubiquiti Networks Inc. and traded under the symbol “UBNT”.
UI is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. UI has a Growth Style Score of B, forecasting year-over-year earnings growth of 36.1% for the current fiscal year.
For fiscal 2026, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.77 to $14.92 per share. UI boasts an average earnings surprise of +45.5%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, UI should be on investors' short list.
Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.
That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.
However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Our proprietary system currently recommends Ubiquiti Inc. (UI - Free Report) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Research shows that stocks carrying the best growth features consistently beat the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).
While there are numerous reasons why the stock of this computer networking company is a great growth pick right now, we have highlighted three of the most important factors below:
Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Ubiquiti is 10%, investors should actually focus on the projected growth. The company's EPS is expected to grow 36.1% this year, crushing the industry average, which calls for EPS growth of 12.4%.
Cash Flow GrowthWhile cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.
Right now, year-over-year cash flow growth for Ubiquiti is 83.4%, which is higher than many of its peers. In fact, the rate compares to the industry average of -1.2%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 11.1% over the past 3-5 years versus the industry average of 10.9%.
Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The current-year earnings estimates for Ubiquiti have been revising upward. The Zacks Consensus Estimate for the current year has surged 5.6% over the past month.
Bottom LineWhile the overall earnings estimate revisions have made Ubiquiti a Zacks Rank #2 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination indicates that Ubiquiti is a potential outperformer and a solid choice for growth investors.
Ubiquiti Inc. (UI - Free Report) has been beaten down lately with too much selling pressure. While the stock has lost 42% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.
We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.
RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.
Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.
So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefiting from the inevitable rebound.
However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.
Why a Trend Reversal is Due for UIThe RSI reading of 28.45 for UI is an indication that the heavy selling could be in the process of exhausting itself, so the stock could bounce back in a quest for reaching the old equilibrium of supply and demand.
This technical indicator is not the only factor that calls for a potential rebound for the stock. There is a fundamental indicator as well. A strong agreement among sell-side analysts covering UI in raising earnings estimates for the current year has led to an increase in the consensus EPS estimate by 5.6% over the last 30 days. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.
Moreover, UI currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Ubiquiti Inc. (UI - Free Report) has been on a downward spiral lately with significant selling pressure. After declining 44% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.
We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.
RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.
Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.
So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefiting from the inevitable rebound.
However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.
Here's Why UI Could Experience a TurnaroundThe RSI reading of 27.21 for UI is an indication that the heavy selling could be in the process of exhausting itself, so the stock could bounce back in a quest for reaching the old equilibrium of supply and demand.
The RSI value is not the only factor that indicates a potential turnaround for the stock in the near term. On the fundamental side, there has been strong agreement among the sell-side analysts covering the stock in raising earnings estimates for the current year. Over the last 30 days, the consensus EPS estimate for UI has increased 5.6%. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.
Moreover, UI currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Shares of Ubiquiti (UI +3.12%) fell 42.3% last month, according to data from S&P Global Market Intelligence. The maker of prosumer and business-grade networking gear reported fiscal Q3 2026 results on May 8, and the stock chart was all downhill from there.
Here's the weird part: the earnings report was actually pretty good. Ubiquiti beat analyst estimates on both revenue and earnings, posted 18.7% year-over-year revenue growth, and announced it had fully paid off its debt. Ubiquiti did everything right except, apparently, whatever Wall Street wanted.
Image source: Getty Images.
Why a solid report inspired a sell-off Digging into the balance sheet, the "why" behind the sell-off becomes clearer. Ubiquiti entered the quarter with a comfortable $437 million cash pile, but it finished with only $176 million. Ubiquity consumed most of its liquid assets to fully repay $250 million in senior notes and continue its share repurchase program.
While being debt-free is a good thing, the market's reaction suggests investors were more focused on the dwindling cash cushion than the simplified balance sheet.
Finally, that earnings beat deserves a skeptical eye. With minimal analyst coverage, the consensus is a ghost. The only firm providing estimates maintains a "sell" rating, meaning the bar was probably set too low. Investors ignored the superficial outperformance.
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The price of admission to Robert Pera's ride If you're a Fool-style investor, it is time to accept a fundamental reality: You are a silent passenger in Ubiquiti founder and CEO Robert Pera's car. He has a tendency to drive with the windows tinted and the GPS turned off.
With Pera owning about 93% of the company, Ubiquiti simply doesn't play by the usual Wall Street rules. There are no earnings calls to guide your expectations, no analyst consensus to lean on, and virtually no engagement with the outside world. And even a small shift in investor confidence can result in substantial price swings, since less than 10% of Ubiquiti's stock is available to retail investors or financial institutions.
This lack of transparency is a double-edged sword; it creates the wild, 42%-in-a-month volatility we just witnessed, but it also allows Ubiquiti to execute a strategy that prioritizes long-term efficiency over short-term "earnings beat" games.
If you're looking for a management team that holds your hand through market turbulence, this isn't it. However, if you are comfortable ignoring the day-to-day noise of a stock with a tiny, illiquid float, you might see this volatility as just the price of admission for owning a unique, founder-led business that answers to no one but its own balance sheet.
Just make sure you're comfortable with betting that Robert Pera is a visionary genius with incredible growth plans in his notebook. He won't show you those notes or explain his plan, beyond the bare minimum required by the Securities and Exchange Commission (SEC).
That may sound like a tough assumption, but Pera certainly has some fans. Ubiquiti is trading at a beefy 11 times trailing sales today, just behind Ciena (CIEN +1.15%) at 13x and ahead of Cisco Systems' (CSCO +0.45%) 8.1x. And Ubiquiti isn't even running in the AI data center networking race, focusing on market segments closer to the consumer level.
