Trade-Ideas: Ubiquiti Networks (UBNT) Is Today's New Lifetime High Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Ubiquiti Networks ( UBNT) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Ubiquiti Networks as such a stock due to the following factors:

  • UBNT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $83.9 million.
  • UBNT has traded 9,779 shares today.
  • UBNT is trading at a new lifetime high.

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More details on UBNT:

Ubiquiti Networks, Inc., together with its subsidiaries, offers a portfolio of networking products and solutions for service providers and enterprises. UBNT has a PE ratio of 34.4. Currently there are 7 analysts that rate Ubiquiti Networks a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Ubiquiti Networks has been 1.2 million shares per day over the past 30 days. Ubiquiti has a market cap of $4.4 billion and is part of the technology sector and telecommunications industry. The stock has a beta of 1.78 and a short float of 24.7% with 3.82 days to cover. Shares are up 12.6% year-to-date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Ubiquiti Networks as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and compelling growth in net income. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation.

Highlights from the ratings report include:
  • UBNT's very impressive revenue growth greatly exceeded the industry average of 3.6%. Since the same quarter one year prior, revenues leaped by 84.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 44.49% is the gross profit margin for UBIQUITI NETWORKS INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 30.18% is above that of the industry average.
  • Net operating cash flow has slightly increased to $27.62 million or 2.95% when compared to the same quarter last year. Despite an increase in cash flow, UBIQUITI NETWORKS INC's cash flow growth rate is still lower than the industry average growth rate of 19.31%.
  • Powered by its strong earnings growth of 135.00% and other important driving factors, this stock has surged by 263.47% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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