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Unity Software Inc. (U) Gains But Lags Market: What You Should Know

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In the latest trading session, Unity Software Inc. (U - Free Report) closed at $35.65, marking a +1.05% move from the previous day. This move lagged the S&P 500's daily gain of 2.76%. Meanwhile, the Dow gained 2.43%, and the Nasdaq, a tech-heavy index, added 0.13%.

Prior to today's trading, shares of the company had lost 0.56% over the past month. This has was narrower than the Computer and Technology sector's loss of 15.41% and lagged the S&P 500's gain of 4.44% in that time.

Investors will be hoping for strength from Unity Software Inc. as it approaches its next earnings release, which is expected to be August 9, 2022. In that report, analysts expect Unity Software Inc. to post earnings of -$0.20 per share. This would mark a year-over-year decline of 900%. Meanwhile, our latest consensus estimate is calling for revenue of $296.21 million, up 8.28% from the prior-year quarter.

U's full-year Zacks Consensus Estimates are calling for earnings of -$0.32 per share and revenue of $1.33 billion. These results would represent year-over-year changes of -45.45% and +20.08%, respectively.

Any recent changes to analyst estimates for Unity Software Inc. should also be noted by investors. 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. 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, 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. Within the past 30 days, our consensus EPS projection has moved 2.06% lower. Unity Software Inc. is currently sporting a Zacks Rank of #3 (Hold).

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 137, putting it in the bottom 46% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


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