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Unity Software Inc. (U) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Unity Software Inc. (U - Free Report) closed at $41.67, marking a +1.54% move from the previous day. This move outpaced the S&P 500's daily gain of 1.22%. Meanwhile, the Dow gained 1.26%, and the Nasdaq, a tech-heavy index, added 4.63%.

Coming into today, shares of the company had gained 36.44% in the past month. In that same time, the Computer and Technology sector gained 12.34%, while the S&P 500 gained 6.22%.

Investors will be hoping for strength from Unity Software Inc. as it approaches its next earnings release. The company is expected to report EPS of $0.06, up 133.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $514.18 million, up 73.1% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.37 per share and revenue of $2.14 billion. These totals would mark changes of +190.24% and +53.65%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Unity Software Inc.These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. 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 110.07. This represents a premium compared to its industry's average Forward P/E of 41.59.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 41% 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.

To follow U in the coming trading sessions, be sure to utilize Zacks.com.


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