UBIQUITI INC (NYSE:UI) – A Strong Contender for Growth Investors Following Louis Navellier's Strategy

UBIQUITI INC (NYSE:UI) stands out as a compelling pick for investors applying Louis Navellier’s growth-focused criteria from The Little Book That Makes You Rich. The company demonstrates strong fundamentals, including accelerating earnings, expanding margins, and high returns on equity—key traits Navellier highlights for superior growth stocks.

Why UI Fits Navellier’s Growth Criteria

• Earnings Revisions & Surprises: Analysts have raised next-quarter EPS estimates by 13.8% over the past three months. UI has also delivered three positive earnings surprises in the last four quarters, averaging a 19.1% beat.
• Sales & Earnings Growth: Revenue grew 21.4% year-over-year, with quarterly sales up 34.7%. EPS surged 56.3% annually and 134.4% quarter-over-quarter, signaling strong momentum.
• Margin Expansion: Operating margins improved by 16.4% over the past year, reflecting efficient cost management alongside revenue growth.
• Cash Flow Strength: Free cash flow skyrocketed 777.6% year-over-year, providing ample liquidity for reinvestment or shareholder returns.
• High ROE: A 125.9% return on equity underscores the company’s ability to generate profits from shareholder investments.

Fundamental Snapshot

UI scores 7/10 in our fundamental rating, excelling in profitability and financial health. While its valuation appears elevated (P/E of 45.4), growth prospects justify the premium, with EPS expected to grow 20.2% annually. The company also maintains a solid balance sheet with no debt.

For a deeper dive, review the full fundamental analysis report.

Our Little Book screener updates daily with more stocks meeting Navellier’s criteria.

Disclaimer

This is not investment advice. Always conduct your own research before making financial decisions.