Back to top

Image: Bigstock

Unity Software Inc. (U) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

Unity Software Inc. (U - Free Report) closed at $36.32 in the latest trading session, marking a +1.71% move from the prior day. This move outpaced the S&P 500's daily loss of 1.22%. At the same time, the Dow lost 0.83%, and the tech-heavy Nasdaq lost 1.56%.

Heading into today, shares of the company had gained 5.53% over the past month, outpacing the Computer and Technology sector's gain of 2.03% and the S&P 500's gain of 0.54% in that time.

Investors will be hoping for strength from Unity Software Inc. as it approaches its next earnings release. In that report, analysts expect Unity Software Inc. to post earnings of $0.16 per share. This would mark year-over-year growth of 214.29%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $552.86 million, up 71.23% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.59 per share and revenue of $2.17 billion, which would represent changes of +243.9% and +56.13%, respectively, from the prior year.

It is also important to note the 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. is currently a Zacks Rank #3 (Hold).

In terms of valuation, Unity Software Inc. is currently trading at a Forward P/E ratio of 60.35. This valuation marks a premium compared to its industry's average Forward P/E of 37.95.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% 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.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Unity Software Inc. (U) - free report >>

Published in