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Unity Software Inc. (U) Gains But Lags Market: What You Should Know

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Unity Software Inc. (U - Free Report) closed the most recent trading day at $28.74, moving +1.38% from the previous trading session. This change lagged the S&P 500's 1.76% gain on the day. At the same time, the Dow added 1.17%, and the tech-heavy Nasdaq gained 3.03%.

Prior to today's trading, shares of the company had lost 33.56% over the past month. This has lagged the Computer and Technology sector's loss of 3.3% and the S&P 500's loss of 5.94% in that time.

Unity Software Inc. will be looking to display strength as it nears its next earnings release. On that day, Unity Software Inc. is projected to report earnings of -$0.05 per share, which would represent year-over-year growth of 37.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $477.42 million, up 49.13% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.19 per share and revenue of $2.1 billion. These totals would mark changes of +146.34% and +51.01%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Unity Software Inc.These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 57.25% lower within the past month. Unity Software Inc. is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Unity Software Inc.'s current valuation metrics, including its Forward P/E ratio of 147.91. For comparison, its industry has an average Forward P/E of 39.3, which means Unity Software Inc. is trading at a premium to the group.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 69, putting it in the top 28% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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