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Unity Software Inc. (U) Ascends While Market Falls: Some Facts to Note

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Unity Software Inc. (U - Free Report) ended the recent trading session at $25.90, demonstrating a +0.82% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 1.18%. Meanwhile, the Dow lost 0.76%, and the Nasdaq, a tech-heavy index, lost 1.76%.

Prior to today's trading, shares of the company had lost 15.94% over the past month. This has lagged the Computer and Technology sector's loss of 2.96% and the S&P 500's loss of 3.35% in that time.

Market participants will be closely following the financial results of Unity Software Inc. in its upcoming release. The company is forecasted to report an EPS of $0.15, showcasing a 207.14% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $550.48 million, indicating a 70.49% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.56 per share and revenue of $2.16 billion, which would represent changes of +236.59% and +55%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Unity Software Inc. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.38% rise in the Zacks Consensus EPS estimate. At present, Unity Software Inc. boasts a Zacks Rank of #2 (Buy).

In terms of valuation, Unity Software Inc. is currently trading at a Forward P/E ratio of 45.88. For comparison, its industry has an average Forward P/E of 35.52, which means Unity Software Inc. is trading at a premium to the group.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% of all 250+ industries.

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

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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