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Unity Software Inc. (U) Flat As Market Gains: What You Should Know

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Unity Software Inc. (U - Free Report) closed at $22.89 in the latest trading session, marking no change from the prior day. This move lagged the S&P 500's daily gain of 0.87%. Elsewhere, the Dow gained 0.67%, while the tech-heavy Nasdaq added 1.11%.

Shares of the company have depreciated by 15.19% over the course of the past month, underperforming the Computer and Technology sector's loss of 5.98% and the S&P 500's loss of 3.97%.

Analysts and investors alike will be keeping a close eye on the performance of Unity Software Inc. in its upcoming earnings disclosure. The company's earnings report is set to go public on May 9, 2024. The company is predicted to post an EPS of $0.05, indicating a 16.67% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $422.53 million, showing a 15.55% drop compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.61 per share and a revenue of $1.79 billion, representing changes of +48.78% and -18.12%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Unity Software Inc. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Unity Software Inc. is currently a Zacks Rank #3 (Hold).

In the context of valuation, Unity Software Inc. is at present trading with a Forward P/E ratio of 37.42. This denotes a premium relative to the industry's average Forward P/E of 27.89.

It's also important to note that U currently trades at a PEG ratio of 1.44. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software industry had an average PEG ratio of 1.75 as trading concluded yesterday.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 54, placing it within the top 22% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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