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Unity Software Inc. (U) Stock Dips While Market Gains: Key Facts

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In the latest trading session, Unity Software Inc. (U - Free Report) closed at $44.66, marking a -1.37% move from the previous day. This change lagged the S&P 500's 0.65% gain on the day. Elsewhere, the Dow saw an upswing of 0.48%, while the tech-heavy Nasdaq appreciated by 0.82%.

Coming into today, shares of the company had lost 8.02% in the past month. In that same time, the Computer and Technology sector lost 1.6%, while the S&P 500 gained 1.15%.

Analysts and investors alike will be keeping a close eye on the performance of Unity Software Inc. in its upcoming earnings disclosure. In that report, analysts expect Unity Software Inc. to post earnings of $0.2 per share. This would mark year-over-year growth of 166.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $490.23 million, up 7.25% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $0.82 per share and a revenue of $1.84 billion, demonstrating changes of +148.81% and 0%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for Unity Software Inc. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, Unity Software Inc. possesses a Zacks Rank of #2 (Buy).

From a valuation perspective, Unity Software Inc. is currently exchanging hands at a Forward P/E ratio of 48.78. This represents a premium compared to its industry average Forward P/E of 24.73.

Meanwhile, U's PEG ratio is currently 5.42. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.51.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 53, putting it in the top 22% 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.

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


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