Unity Software Inc. (U) closed the recent trading session at $26.25, showing a change of -1.35% from the previous day’s closing price. This change trailed the S&P 500’s loss of 0.72% on the day. Elsewhere, the Dow fell 1%, while the tech-rich Nasdaq slipped 0.95%.
Coming to today, the company’s shares have lost 1.48% in the past month. At the same time, the computer and technology sector gained 2.34%, while the S&P 500 gained 2.16%.
Market participants will closely monitor Unity Software Inc.’s financial results. in his forthcoming edition. Earnings per share (EPS) is projected to be $0.05, which reflects a decrease of 16.67% compared to the same quarter last year. At the same time, our latest consensus estimate expects revenue to come in at $422.53 million, indicating a decline of 15.55% compared to the year-ago quarter.
For the year-over-year period, Zacks Consensus Estimates are projecting earnings of $0.61 per share and revenue of $1.79 billion, representing +48.78% and -18.12% year-over-year moves, respectively.
Investors should also pay attention to any recent changes in analyst estimates for Unity Software Inc. Recent revisions usually reflect the latest short-term business trends. As a result, positive changes in estimates indicate a favorable analyst outlook on the company’s business health and profitability.
Our research shows that these adjustments in valuations are directly related to imminent stock price performance. To benefit from this, we developed Zacks Rank, a proprietary model that takes these valuation changes into account and provides an effective rating system.
The Zacks Rank System ranges from #1 (Strong Buy) to #5 (Strong Sell). It has an outstanding track record, with the #1 stock delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS Estimate has remained stable. Right now, Unity Software Inc. holds a Zacks Rank #3 (Hold).
In the context of the assessment, Unity Software Inc. it currently trades at a P/E ratio of 43.5. Its industry has an average Forward P/E of 29.23, so it could be concluded that Unity Software Inc. trades comparatively at a premium.
We can additionally note that U currently has a PEG ratio of 1.67. Comparable to the generally accepted P/E ratio, the PEG ratio is also responsible for a company’s projected earnings growth. The Internet Software industry currently had an average PEG ratio of 1.92 as of yesterday’s close.
The Internet software industry is part of the computer and technology sector. The industry currently has a Zacks Industry Rank of 34, which ranks it in the top 14% of over 250 industries.
Zacks Industry Rank assesses the strength of our specific industry groups by calculating the average Zacks Rank of the individual stocks included in the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
To follow the U in the upcoming trading sessions, be sure to use Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today you can download the 7 best stocks for the next 30 days. Click to get this free report
Unity Software Inc. (U) : Free Stock Analysis Report
To read this article on Zacks.com, click here.
Zacks Investment Research