UBIQUITI INC (NYSE:UI) Combines Minervini Trend Template with High Growth Momentum

Ubiquiti Inc (NYSE:UI) has become a significant candidate through a screening method that joins Mark Minervini's Trend Template with High Growth Momentum standards. This two-part process finds companies displaying both solid technical momentum and strong fundamental growth traits. The method centers on securities showing forceful uptrends via particular moving average arrangements and price movement, while also needing quickened earnings and revenue growth that points to better business results. This pairing aims to find stocks set for possible further gains.

Technical Strength From Trend Template Arrangement

Ubiquiti shows a strong technical image that meets Minervini's strict Trend Template needs. The template focuses on stocks in clear stage 2 uptrends, which UI displays through several confirming signs:

• Moving Average Arrangement: The stock trades higher than all main moving averages (50-day: $553.65, 150-day: $430.69, 200-day: $414.35) with correct order, the 50-day above both the 150-day and 200-day, and the 150-day above the 200-day. This layered formation points to unified positive momentum across different periods.
• Rising Averages: All main moving averages point upward, confirming continued buying interest. The 200-day moving average has increased from $412.54 to its present point, showing steady long-term demand.
• Price Location: At $696.57, UI is about 195% higher than its 52-week low of $235.96 and within 1.3% of its 52-week high of $705.78. This closeness to new highs indicates solid momentum without major overhead supply.
• Relative Strength: With a ChartMill Relative Strength rating of 97.15, UI does better than 97% of all stocks, pointing to institutional buying and a leading position.

These technical features are important because Minervini's studies indicate that stocks in strong uptrends often keep rising. The Trend Template methodically finds such securities while staying away from those in consolidating or falling stages.

Fundamental Speed for Growth Investors

Beyond technicals, Ubiquiti shows the fundamental speed that high-growth investors look for. The company's financial numbers reveal major betterment across main growth areas:

• Earnings Speed: Recent quarterly EPS growth has sped up greatly, with the last quarter showing 103.4% year-over-year growth, then 134.4% in the quarter before. This shows a large gain over the 45.6% growth recorded three quarters ago.
• Revenue Growth: Quarterly revenue growth has also sped up, getting to 49.6% in the most recent quarter compared to 18.8% three quarters earlier. This hints at increasing market share or effective product acceptance.
• Profit Margin Improvement: The company's profit margin has grown steadily, reaching 35.1% in the latest quarter versus 23.3% three quarters before. This shows better operational effectiveness and possible pricing strength.
• Estimate Changes: Analysts have increased next-year EPS estimates by 26.7% over the last three months, showing rising positive feelings about the company's future.

For growth investors, these speeding fundamentals are vital because they often come before continued stock gains. Companies showing improving growth rates and widening margins frequently draw institutional money, creating a cycle of price increases.

Technical Condition and Setup Points

According to ChartMill's technical study, UI gets a perfect 10 out of 10 on technical rating, showing very good condition across measured metrics. The stock displays positive directions in both short-term and long-term periods and shows better performance compared to both the wider market and its Communications Equipment industry group, where it does better than 85% of stocks.

Even with the high technical rating, the setup quality scores only 3 out of 10, meaning that while the stock is technically in good shape, present price movement may be too high for good entry spots. The study notes that UI has been trading in a broad span between $585.69 and $705.78 over the last month and now trades close to the top of this span. For investors thinking about positions, waiting for possible consolidation or moves lower toward noted support areas around $597.90 or $434.26 could give better risk-reward situations.

View the full technical study report for UI for specific support points and other technical measures.

Investment Meaning

Ubiquiti presents a strong case for investors following the Minervini method joined with growth investing ideas. The stock meets the strict technical standards of the Trend Template while displaying the fundamental speed growth investors want. The mix of high relative strength, arranged moving averages, and speeding earnings and revenue growth forms a profile that has in the past come before continued better performance.

However, the present high price location suggests careful entry timing could be important. Investors might think about starting partial positions or waiting for moves lower to main support areas to improve possible risk-reward setups. The stock's high relative strength means it stays liked by institutional investors, which often gives support during market dips.

Finding Other Similar Chances

For investors looking for more candidates that meet similar strict growth and momentum standards, the High Growth Momentum + Trend Template screen often finds securities showing these traits. This methodical process can help investors effectively locate companies displaying both technical strength and fundamental growth speed.

Disclaimer: This study is for information and learning only and does not make up investment advice. All investment choices should come from your own study, risk comfort, and money situation. Past results do not ensure future outcomes. Please talk with a qualified financial advisor before making any investment choices.