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Here's Why Unity Software Inc. (U) Gained But Lagged the Market Today
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In the latest trading session, Unity Software Inc. (U - Free Report) closed at $26.05, marking a +0.5% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.74%. Elsewhere, the Dow lost 0.01%, while the tech-heavy Nasdaq added 1.68%.
Heading into today, shares of the company had lost 0.99% over the past month, lagging the Computer and Technology sector's gain of 0.95% and the S&P 500's gain of 0.8% in that time.
The upcoming earnings release of Unity Software Inc. will be of great interest to investors. The company's earnings report is expected on May 9, 2024. The company is expected to report EPS of $0.05, down 16.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $422.53 million, down 15.55% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.61 per share and revenue of $1.79 billion. These totals would mark changes of +48.78% and -18.12%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Unity Software Inc. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. 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 42.38. This expresses a premium compared to the average Forward P/E of 29.42 of its industry.
We can additionally observe that U currently boasts a PEG ratio of 1.63. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Internet - Software industry stood at 1.86 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 35, putting it in the top 14% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Here's Why Unity Software Inc. (U) Gained But Lagged the Market Today
In the latest trading session, Unity Software Inc. (U - Free Report) closed at $26.05, marking a +0.5% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.74%. Elsewhere, the Dow lost 0.01%, while the tech-heavy Nasdaq added 1.68%.
Heading into today, shares of the company had lost 0.99% over the past month, lagging the Computer and Technology sector's gain of 0.95% and the S&P 500's gain of 0.8% in that time.
The upcoming earnings release of Unity Software Inc. will be of great interest to investors. The company's earnings report is expected on May 9, 2024. The company is expected to report EPS of $0.05, down 16.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $422.53 million, down 15.55% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.61 per share and revenue of $1.79 billion. These totals would mark changes of +48.78% and -18.12%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Unity Software Inc. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. 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 42.38. This expresses a premium compared to the average Forward P/E of 29.42 of its industry.
We can additionally observe that U currently boasts a PEG ratio of 1.63. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Internet - Software industry stood at 1.86 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 35, putting it in the top 14% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.