UBIQUITI INC (NYSE:UI) – A Strong Contender for Growth Investors

UBIQUITI INC (NYSE:UI) stands out as a compelling pick for investors following Louis Navellier’s growth strategy outlined in The Little Book That Makes You Rich. The company meets multiple criteria for superior growth stocks, including strong earnings momentum, expanding margins, and high returns on equity. Below, we examine why UI aligns well with these principles.

Key Strengths of UBIQUITI INC

• Earnings Revisions & Surprises: Analysts have raised EPS estimates for the next quarter by 13.78% over the past three months. UI has also delivered three positive earnings surprises in the last four quarters, with an average beat of 19.10%.
• Revenue & Earnings Growth: Sales grew 21.43% year-over-year, while quarterly revenue jumped 34.72%. EPS surged 56.31% over the past year and 134.38% quarter-over-quarter, signaling accelerating profitability.
• Operating Margin Expansion: Operating margins improved by 16.42% in the past year, reflecting efficient cost management alongside revenue growth.
• Strong Cash Flow: Free cash flow skyrocketed 777.58% year-over-year, providing ample liquidity for reinvestment or shareholder returns.
• High Return on Equity (ROE): UI’s ROE of 125.89% is exceptional, indicating effective use of shareholder capital.

Fundamental Snapshot

Our fundamental analysis report assigns UI a rating of 7/10, highlighting its outstanding profitability and financial health. Key takeaways include:

• Profitability: Exceptional ROE and return on invested capital (ROIC) place UI among the top performers in its industry.
• Valuation: While the P/E ratio of 47.61 appears high, a low PEG ratio suggests growth may justify the premium.
• Growth Outlook: Analysts project 20.17% annual EPS growth, supported by steady revenue expansion.

For more stocks matching this strategy, explore our Louis Navellier Growth screener.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should conduct your own analysis before making investment decisions.