In the last trading session, Unity Software Inc. (U) closed at $31.02, up +0.62% from the previous day. The move lagged the S&P 500’s daily gain of 2.11%. On the other hand, the Dow registered a gain of 1.18% and the tech-oriented Nasdaq gained 2.96%.
The company’s stock posted a 6.66% month-over-month loss, trailing the Computer & Technology sector’s 1.69% gain and the S&P 500’s 3.08% gain.
Unity Software Inc.’s performance will be closely watched by analysts and investors alike. in the upcoming earnings release. The company’s earnings report is scheduled to be released on February 26, 2024. Our latest consensus estimate calls for quarterly revenue of $536.48 million, up 18.96% from the year-ago period.
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. Therefore, positive estimate revisions express analysts’ confidence in the company’s business performance and profit potential.
Empirical research shows that these revisions in valuations are directly correlated with future stock price performance. We developed the Zacks Rank to take advantage of this phenomenon. Our system takes these valuation changes into account and provides a clear, actionable grading model.
The Zacks Ranking System, which varies between #1 (Strong Buy) and #5 (Strong Sell), has an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Zacks Estimate Consensus EPS fell 4.02% lower in the past month. Currently Unity Software Inc. has a Zacks Rank #4 (Sell).
In terms of valuation, Unity Software Inc. currently trades at a forward P/E ratio of 35.64. Its industry has an average Forward P/E of 31.63, so it could be concluded that Unity Software Inc. trades comparatively at a premium.
The Internet software industry is part of the computer and technology sector. Currently, this industry ranks #74 on the Zacks Industry Rank, which places it in the top 30% of all 250+ industries.
The Zacks Industry Rank measures the strength of our industry groups by measuring the average Zacks Rank of 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.
You can find more information on all of these metrics and more at Zacks.com.
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Unity Software Inc. (U) : Free Stock Analysis Report
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