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Unisys (UIS) Outpaces Stock Market Gains: What You Should Know

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Unisys (UIS - Free Report) closed the most recent trading day at $11.68, moving +1.04% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.67%. Meanwhile, the Dow gained 0.82%, and the Nasdaq, a tech-heavy index, added 0.78%.

Heading into today, shares of the information technology service provider had lost 14.43% over the past month, lagging the Computer and Technology sector's gain of 2.27% and the S&P 500's gain of 1.25% in that time.

Wall Street will be looking for positivity from UIS as it approaches its next earnings report date. On that day, UIS is projected to report earnings of $0.35 per share, which would represent a year-over-year decline of 43.55%. Meanwhile, our latest consensus estimate is calling for revenue of $660.20 million, down 6.8% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.88 per share and revenue of $2.82 billion. These totals would mark changes of -3.59% and -0.27%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for UIS. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. UIS currently has a Zacks Rank of #1 (Strong Buy).

In terms of valuation, UIS is currently trading at a Forward P/E ratio of 6.17. For comparison, its industry has an average Forward P/E of 21.13, which means UIS is trading at a discount to the group.

The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 80, which puts it in the top 32% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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