Many investors appear to be quite bearish on Ubiquiti Networks Inc UBNT, especially if you look at the percentage of the float that is sold short for this stock. Currently, 22.39% of the float is sold short, suggesting an extreme level of bearishness for UBNT.
While investors might be piling up against this stock for any number of reasons, it is important to note that UBNT has seen some weakness as of late, as the security hasn't been able to get into positive territory over the past four weeks, losing 10.71% in the time frame.
Better Trading Ahead?
While the short interest and the recent performance are certainly troubling, there is reason to be optimistic on this stock. Recent earnings estimate activity has actually been quite positive as of late, even in the face of such widespread pessimism.
Thanks to these rising estimates, we actually have a Zacks Rank #1(Strong Buy) on UBNT, so we clearly don't believe in the negativity surrounding this firm. After all, it is hard not to be at least a little optimistic on the short term when you consider that 1 estimate has moved higher in the past 60 days compared to none lower in the same time frame, while the consensus has also increased.
Given this, a short-covering rally is certainly in the cards for UBNT stock, especially if investors embrace the positive earnings estimate revision picture, suggesting that UBNT could definitely move higher in the weeks ahead.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
While investors might be piling up against this stock for any number of reasons, it is important to note that UBNT has seen some weakness as of late, as the security hasn't been able to get into positive territory over the past four weeks, losing 10.71% in the time frame.
Better Trading Ahead?
While the short interest and the recent performance are certainly troubling, there is reason to be optimistic on this stock. Recent earnings estimate activity has actually been quite positive as of late, even in the face of such widespread pessimism.
Thanks to these rising estimates, we actually have a Zacks Rank #1(Strong Buy) on UBNT, so we clearly don't believe in the negativity surrounding this firm. After all, it is hard not to be at least a little optimistic on the short term when you consider that 1 estimate has moved higher in the past 60 days compared to none lower in the same time frame, while the consensus has also increased.
Given this, a short-covering rally is certainly in the cards for UBNT stock, especially if investors embrace the positive earnings estimate revision picture, suggesting that UBNT could definitely move higher in the weeks ahead.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
UBIQUITI NETWRK UBNT: Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in
