In the latest trading session, Unity Software Inc. (U) closed at $44.49, marking a +0.11% move from the previous day. The stock outpaced the S&P 500’s daily gain of 0.03%. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq lost 1.37%.
Heading into today, shares of the company had gained 17.41% over the past month, outpacing the Computer and Technology sector’s gain of 1.16% and the S&P 500’s gain of 3.43% in that time.
Unity Software Inc. will be looking to display strength as it nears its next earnings release, which is expected to be August 2, 2023. On that day, Unity Software Inc. is projected to report earnings of $0.06 per share, which would represent year-over-year growth of 133.33%. Our most recent consensus estimate is calling for quarterly revenue of $514.18 million, up 73.1% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.37 per share and revenue of $2.14 billion, which would represent changes of +190.24% and +53.65%, respectively, from the prior 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.
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 remained stagnant. Unity Software Inc. is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Unity Software Inc. currently has a Forward P/E ratio of 119.19. This represents a premium compared to its industry’s average Forward P/E of 43.5.
The Internet – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Unity Software Inc. (U) : Free Stock Analysis Report
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