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Unity Software Inc. (U) Falls More Steeply Than Broader Market: What Investors Need to Know

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Unity Software Inc. (U - Free Report) closed the latest trading day at $19.44, indicating a -0.31% change from the previous session's end. The stock fell short of the S&P 500, which registered a loss of 0.27% for the day. Meanwhile, the Dow lost 0.51%, and the Nasdaq, a tech-heavy index, added 0.03%.

Coming into today, shares of the company had lost 11.2% in the past month. In that same time, the Computer and Technology sector gained 1.69%, while the S&P 500 gained 4.27%.

Market participants will be closely following the financial results of Unity Software Inc. in its upcoming release. The company plans to announce its earnings on February 20, 2025. The company is predicted to post an EPS of -$0.35, indicating a 252.17% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $431.77 million, indicating a 29.13% decrease compared to the same quarter of the previous year.

It is also important to note the recent changes to analyst estimates for Unity Software Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. currently has a Zacks Rank of #3 (Hold).

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 72, finds itself in the top 29% echelons of all 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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