Back to top

Image: Bigstock

Unisys Shares Rise 37% in 6 Months: How Should You Approach the Stock?

Read MoreHide Full Article

Unisys (UIS - Free Report) shares have surged 36.7% over the past six months, outperforming the Zacks Computer and Technology sector’s appreciation of 1% and the Zacks Computers – IT Services industry’s return of 11.8%.

UIS shares have also outperformed industry peers like ServiceNow (NOW - Free Report) , DXC Technology (DXC - Free Report) and Draganfly (DPRO - Free Report) in the same time frame. While NOW and DXC shares have appreciated 32.3% and 2.5%, respectively, DPRO shares have lost 39.9% over the past six months.

Unisys’ performance can be attributed to strong market demand for AI and cloud transformation and its innovative solutions.

UIS’ 2025 Earnings Estimates Trend Steady

The Zacks Consensus Estimate for UIS’ 2025 earnings is currently pegged at 61 cents per share, unchanged over the past 90 days, and indicating year-over-year growth of 96.77%.

The consensus mark for Unisys’ 2025 revenues is pegged at $2.1 billion, indicating year-over-year growth of 3.42%.

UIS beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 50.58%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

UIS Banks on AI Solutions to Fend off Competition

Unisys’ innovation-driven approach positions it to meet the growing demand for AI-enabled solutions. With over 120 active AI projects spanning diverse industries, Unisys delivers tailored cutting-edge offerings.

UIS’ generative AI-powered tools like the Unisys Service Experience Accelerator and custom education companions address specific client needs while enhancing operational capabilities. 

Unisys’ advancements in logistics optimization are noteworthy. It is leveraging AI and quantum annealing to enhance its cargo solutions, thus expanding its footprint in the travel and transportation sectors.

However, UIS is suffering from fierce market competition, with its rivals leveraging cutting-edge technologies like Generative AI, cloud computing and digital transformation tools to capture market share.

Furthermore, macroeconomic uncertainties, including inflation and the changing regulatory landscape, are intensifying challenges for Unisys, creating headwinds that could impact its growth.

UIS Stock: Buy, Sell or Hold?

Unisys has been showing strong growth and innovation but continues to face challenges from tough competition and economic uncertainties.

UIS currently carries a Zacks Rank #3 (Hold), suggesting that it may be wise for investors to wait for a more favorable entry point in the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


Zacks' 7 Best Strong Buy Stocks (New Research Report)


Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.


Click Here, It's Really Free

Published in