Ubiquiti Stock May Still Have Room to Run

Ubiquiti (UI) stock might be a good candidate to ride the momentum. Why? Because you get strong margin, low-debt capital structure, and strong momentum.

Ubiquiti’s stock is driven by strong Enterprise Technology demand, evidenced by Q1 FY26 revenue up 33.3% year-over-year to $733.8M, and fiscal 2025 revenue up 33.4% to $2.6B. This growth is amplified by the widespread adoption of Wi-Fi 7, with Ubiquiti actively launching new UniFi U7 access points, positioning it to capture significant market share as Wi-Fi 7 shipments comprise over a third of indoor AP revenues in 2025.

Why buy now? Here are some numbers:

• Revenue Growth: Ubiquiti saw revenue growth of 36.8% LTM and 17.5% last 3 year average, but this is not a growth story
• Long-Term Profitability: About 16.9% operating cash flow margin and 29.8% operating margin last 3 year average.
• Strong Momentum: Currently in top 10 percentile of stocks in terms of “trend strength” – our proprietary momentum metric.
• Room To Run: Despite its momentum, UI stock is trading 22% below its 52-week high.

While revenue growth helps, this selection is all about riding momentum with quality – which we judge by margins (reflective of pricing power / strong business model) and capital structure (not too debt heavy).

As a quick background, Ubiquiti provides networking technology platforms for high-capacity Internet access, unified IT, and consumer electronics, featuring proprietary protocols to minimize signal noise for professional and personal use.

*LTM: Last Twelve Months

But do these numbers tell the full story? Read Buy or Sell UI Stock to see if Ubiquiti still has an edge that holds up under the hood.

You can’t predict what happens to individual stocks, but you can prepare. See how High Quality Portfolio helps you.

Stocks Like These Can Outperform. Here Is Data

Here is how we make the selection: We consider stocks with > $2 Bil in market cap, high operating and cfo (cash flow from operations) margin, no instance of very large revenue decline in the past 5 years, low-debt capital structure, and strong momentum as defined by our proprietry momentum metric.

Below are statistics for stocks with this selection strategy applied between 12/31/2016 and 6/30/2025.

• Average 12-month forward returns of nearly 15%
• 12-month win rate (percentage of picks returning positive) of about 60%

But Consider The Risk

That said, this stock isn’t immune to big drops. It fell about 37% in the 2018 correction, 40% during the Covid crash, and a sharp 72% in the recent inflation shock. Even with strong fundamentals, these dips show how vulnerable it can be when the market turns south. Quality matters, but steep sell-offs can still hit hard.

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read UI Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.