Unity Software Inc. (U) closed the last trading day at $26, moving -0.69% from the previous trading session. The stock lagged behind the S&P 500, which recorded a daily loss of 0.29%. Elsewhere, the Dow lost 0.35%, while the tech-heavy Nasdaq lost 0.3%.
Year to date, shares of the company have lost 25.01% over the past month, trailing the Computer & Technology sector’s 3.61% gain and the S&P 500’s 4.42% gain over the period.
Unity Software Inc.’s upcoming earnings release. will be of great interest to investors. The company is expected to report EPS of $0.05, representing a year-over-year decline of 16.67%. At the same time, our latest consensus estimate is for revenue of $422.53 million, which would reflect a decline of 15.55% compared to the same quarter last year.
For the full year, Zacks Consensus Estimates forecast earnings of $0.61 per share and revenue of $1.79 billion, indicating year-over-year changes of +48.78% and -18.12%, respectively.
Investors may also be taking note of recent changes in analyst estimates for Unity Software Inc. These revisions help demonstrate the ever-changing nature of short-term business trends. As such, positive estimate revisions reflect analysts’ optimism about the company’s operations and profitability.
Research shows that these valuation revisions are directly correlated with short-term stock price momentum. To take advantage of this, we created Zacks Rank, a proprietary model that integrates these valuation changes and provides a functional rating system.
The Zacks Ranking System, which runs from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of externally audited outperformance, with #1 ranked stocks delivering an average annual return of +25% since 1988. Over the past month there has been a 22.22% decline in the Zacks Consensus EPS Estimate. Unity Software Inc. currently holds a Zacks Rank #3 (Hold).
In the context of the assessment, Unity Software Inc. it currently trades at a forward P/E ratio of 42.8. This valuation represents a premium compared to its industry average Forward P/E of 30.85.
Also, it should be mentioned that U has a PEG ratio of 1.65. This metric is used similarly to the familiar P/E ratio, but the PEG ratio also takes into account the expected growth rate of the stock’s earnings. At the close of trading yesterday, the Internet Software industry had an average PEG ratio of 1.82.
The Internet software industry is part of the computer and technology sector. The industry currently has a Zacks Industry Rank of 43, which ranks it in the top 18% of over 250 industries.
The Zacks Industry Rank assesses the strength of our individual industry groups by calculating the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
Be sure to rely on Zacks.com to watch all of these metrics impacting the stock, and more, in the coming trading sessions.
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Unity Software Inc. (U) : Free Stock Analysis Report
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