Unity Software Inc. (U) closed the most recent trading day at $35.25, moving -2.87% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.53%. Meanwhile, the Dow experienced a drop of 0.71%, and the technology-dominated Nasdaq saw a decrease of 0.93%.
The company's shares have seen a decrease of 18.49% over the last month, not keeping up with the Computer and Technology sector's gain of 1.25% and the S&P 500's gain of 1.13%.
Analysts and investors alike will be keeping a close eye on the performance of Unity Software Inc. in its upcoming earnings disclosure. The company's earnings report is set to go public on November 5, 2025. The company's upcoming EPS is projected at $0.16, signifying a 151.61% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $447.17 million, showing a 0.15% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.77 per share and revenue of $1.8 billion, which would represent changes of +145.83% and -0.71%, respectively, from the prior 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 73.08% lower within the past month. Currently, Unity Software Inc. is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Unity Software Inc. is currently being traded at a Forward P/E ratio of 47.25. This represents a premium compared to its industry average Forward P/E of 29.31.
Also, we should mention that U has a PEG ratio of 10.96. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry had an average PEG ratio of 2.1 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 71, positioning it in the top 29% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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