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 stock selection criteria from The Little Book That Makes You Rich. The company demonstrates strong earnings momentum, accelerating revenue growth, and exceptional profitability metrics—key traits Navellier emphasizes for identifying high-growth stocks.

Why UI Fits Navellier’s Growth Criteria

• Earnings Revisions & Surprises: Analysts have raised EPS estimates for the next quarter by 13.78% over the past three months, signaling confidence in UI’s near-term performance. The company has also surpassed earnings expectations in three of the last four quarters, with an average surprise of 19.1%.
• Sales & Earnings Growth: Revenue grew 21.4% year-over-year, while quarterly sales surged 34.7%. EPS growth is even more impressive, with a 134.4% quarterly jump and 56.3% annual increase.
• Expanding Profitability: Operating margins improved by 16.4% over the past year, reflecting efficient cost management. Free cash flow skyrocketed 777.6%, underscoring strong financial health.
• High Return on Equity (ROE): UI’s ROE of 125.9% is exceptional, indicating effective use of shareholder capital to generate profits.

Fundamental Strengths

UI’s fundamental report highlights additional strengths:

• Profitability: Industry-leading margins, including a 30.7% operating margin and 23.7% net margin.
• Financial Health: No debt and a high Altman-Z score (23.19) suggest minimal bankruptcy risk.
• Valuation: While the P/E ratio (48.9) appears high, a low PEG ratio suggests growth may justify the premium.

For investors seeking similar high-growth candidates, our Louis Navellier Growth Stock Screener provides updated results daily.

Disclaimer

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