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 the growth-focused criteria outlined in Louis Navellier’s The Little Book That Makes You Rich. The company’s fundamentals align well with Navellier’s eight rules for identifying superior growth stocks, making it a noteworthy candidate for further research.

Why UI Fits Navellier’s Growth Criteria

1. Positive Earnings Revisions – Analysts have raised EPS estimates for the next quarter by 13.78% over the past three months, signaling confidence in future performance.
2. Positive Earnings Surprises – UI has exceeded earnings expectations in three of the last four quarters, with an average surprise of 19.10%.
3. Increasing Sales Growth – Revenue grew 21.43% year-over-year, while quarterly sales surged 34.72%, reflecting strong demand.
4. Expanding Operating Margin – Operating margins improved by 16.42% over the past year, indicating better cost efficiency.
5. Strong Cash Flow – Free cash flow skyrocketed 777.58% year-over-year, providing financial flexibility.
6. Earnings Growth – EPS jumped 56.31% year-over-year, with quarterly EPS up 134.38%, highlighting accelerating profitability.
7. Positive Earnings Momentum – The latest quarterly EPS growth (134.38%) outpaced the same quarter’s growth a year ago (96.92%).
8. High Return on Equity – UI’s ROE of 125.89% is exceptional, placing it among the top performers in its industry.

Fundamental Strengths

UI’s fundamental analysis report highlights additional strengths:

• Profitability: Outstanding ROE, ROA, and operating margins.
• Financial Health: No debt and a strong Altman-Z score (21.67) suggest low bankruptcy risk.
• Valuation: While the P/E ratio (44.94) appears high, strong earnings growth (expected 20.17% annually) may justify the premium.

For investors seeking similar growth opportunities, our Louis Navellier’s Little Book screener provides updated results daily.

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.