Back to top

Image: Bigstock

Unity Software Inc. (U) Declines More Than Market: Some Information for Investors

Read MoreHide Full Article

Unity Software Inc. (U - Free Report) ended the recent trading session at $45.88, demonstrating a -1.41% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.13%. At the same time, the Dow lost 0.27%, and the tech-heavy Nasdaq lost 0.07%.

The company's stock has climbed by 21.36% in the past month, exceeding the Computer and Technology sector's gain of 6.17% and the S&P 500's gain of 2.71%.

The investment community will be closely monitoring the performance of Unity Software Inc. in its forthcoming earnings report. The company is expected to report EPS of $0.17, up 154.84% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $447.48 million, showing a 0.21% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.78 per share and revenue of $1.81 billion, which would represent changes of +146.43% and -0.37%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Unity Software Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Unity Software Inc. presently features a Zacks Rank of #2 (Buy).

In terms of valuation, Unity Software Inc. is currently trading at a Forward P/E ratio of 59.91. This indicates a premium in contrast to its industry's Forward P/E of 31.79.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 78, this industry ranks in the top 32% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Unity Software Inc. (U) - free report >>

Published in