Unity Software Inc. (U) ended the recent trading session at $42.76, demonstrating a +1.54% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.59%. At the same time, the Dow added 0.65%, and the tech-heavy Nasdaq gained 0.44%.
The company's stock has climbed by 4.83% in the past month, falling short of the Computer and Technology sector's gain of 7.68% and outpacing the S&P 500's gain of 2.72%.
Market participants will be closely following the financial results of Unity Software Inc. in its upcoming release. In that report, analysts expect Unity Software Inc. to post earnings of $0.17 per share. This would mark year-over-year growth of 154.84%. Simultaneously, our latest consensus estimate expects the revenue to be $447.48 million, showing a 0.21% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.78 per share and a revenue of $1.81 billion, indicating changes of +146.43% and -0.37%, respectively, from the former year.
Any recent changes to analyst estimates for Unity Software Inc. should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Unity Software Inc. is currently a Zacks Rank #2 (Buy).
With respect to valuation, Unity Software Inc. is currently being traded at a Forward P/E ratio of 54.22. This indicates a premium in contrast to its industry's Forward P/E of 30.06.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 65, positioning it in the top 27% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Unity Software Inc. (U): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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