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Ubiquiti Inc. is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company has demonstrated strong financial growth, positive recent earnings, and a bullish technical setup. Despite the lack of immediate trading signals and a slightly overbought RSI, its long-term growth potential makes it a solid choice for investment.
The stock is in a bullish trend with moving averages aligned positively (SMA_5 > SMA_20 > SMA_200). The MACD histogram is above 0 and positively contracting, indicating bullish momentum. RSI is at 79.31, slightly in the overbought zone but not signaling a reversal yet. Key resistance levels are at R1: 705.463 and R2: 750.572, with the current price at 720.82, suggesting it is nearing resistance but still within a bullish range.
Ubiquiti's Q2 financial results exceeded expectations, with revenue up 35.8% YoY and net income up 70.8% YoY.
The company declared a consistent quarterly dividend of $0.80 per share.
Strong gross margin growth of 11.38% YoY, indicating operational efficiency.
Analyst Tim Long from Barclays maintains an Underweight rating despite raising the price target to $527, which is significantly below the current price.
Stock trend analysis suggests a potential short-term decline of -0.82% in the next day and -6.31% in the next month.
Ubiquiti reported strong Q2 2026 financials, with revenue of $814.9 million (up 35.8% YoY), net income of $233.6 million (up 70.8% YoY), and EPS of $3.86 (up 70.8% YoY). Gross margin improved to 45.9%, reflecting efficient cost management.
Barclays analyst Tim Long raised the price target to $527 from $455 but maintained an Underweight rating, indicating skepticism about the stock's valuation despite strong financial performance.