In the latest trading session, Unity Software Inc. (U) closed at $34.72, marking a -7.19% move from the previous day. This change lagged the S&P 500's daily loss of 0.63%. Meanwhile, the Dow experienced a drop of 0.65%, and the technology-dominated Nasdaq saw a decrease of 0.47%.
Shares of the company witnessed a loss of 17.91% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 1.9%, and the S&P 500's gain of 0.92%.
Analysts and investors alike will be keeping a close eye on the performance of Unity Software Inc. in its upcoming earnings disclosure. The company is expected to report EPS of $0.16, up 151.61% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $447.17 million, indicating a 0.15% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.77 per share and a revenue of $1.8 billion, signifying shifts of +145.83% and -0.71%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Unity Software Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 73.08% lower. Unity Software Inc. currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Unity Software Inc. is currently exchanging hands at a Forward P/E ratio of 48.71. This indicates a premium in contrast to its industry's Forward P/E of 29.25.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 62, putting it in the top 26% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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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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