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Unity Software Inc. (U) Falls More Steeply Than Broader Market: What Investors Need to Know
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In the latest close session, Unity Software Inc. (U - Free Report) was down 6.08% at $41.42. The stock's change was less than the S&P 500's daily loss of 0.03%. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, added 0.01%.
Shares of the company have depreciated by 0.63% over the course of the past month, underperforming the Computer and Technology sector's gain of 5.26%, and the S&P 500's gain of 0.53%.
The investment community will be closely monitoring the performance of Unity Software Inc. in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.34, reflecting a 70% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $564.84 million, showing a 20.02% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.21 per share and revenue of $2.22 billion, which would represent changes of +40.7% and +19.95%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Unity Software Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Unity Software Inc. currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Unity Software Inc. is currently trading at a Forward P/E ratio of 36.45. This represents a premium compared to its industry average Forward P/E of 19.86.
Investors should also note that U has a PEG ratio of 0.88 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 1.15 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 94, finds itself in the top 39% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
View the Zacks #1 Rank List
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Unity Software Inc. (U) Falls More Steeply Than Broader Market: What Investors Need to Know
In the latest close session, Unity Software Inc. (U - Free Report) was down 6.08% at $41.42. The stock's change was less than the S&P 500's daily loss of 0.03%. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, added 0.01%.
Shares of the company have depreciated by 0.63% over the course of the past month, underperforming the Computer and Technology sector's gain of 5.26%, and the S&P 500's gain of 0.53%.
The investment community will be closely monitoring the performance of Unity Software Inc. in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.34, reflecting a 70% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $564.84 million, showing a 20.02% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.21 per share and revenue of $2.22 billion, which would represent changes of +40.7% and +19.95%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Unity Software Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Unity Software Inc. currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Unity Software Inc. is currently trading at a Forward P/E ratio of 36.45. This represents a premium compared to its industry average Forward P/E of 19.86.
Investors should also note that U has a PEG ratio of 0.88 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 1.15 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 94, finds itself in the top 39% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.