In the latest trading session, Unity Software Inc. (U) closed at $37.29, marking a +2.76% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.79%. Meanwhile, the Dow experienced a rise of 1.01%, and the technology-dominated Nasdaq saw an increase of 1.15%.
Heading into today, shares of the company had lost 13.82% over the past month, lagging the Computer and Technology sector's gain of 1.2% and the S&P 500's gain of 1.27%.
The upcoming earnings release of Unity Software Inc. will be of great interest to investors. The company's earnings report is expected 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. Alongside, our most recent consensus estimate is anticipating revenue of $447.59 million, indicating a 0.24% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.77 per share and revenue of $1.8 billion. These totals would mark changes of +145.83% and -0.72%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Unity Software Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 73.08% lower within the past month. Unity Software Inc. is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Unity Software Inc. is currently exchanging hands at a Forward P/E ratio of 47.25. Its industry sports an average Forward P/E of 29.93, so one might conclude that Unity Software Inc. is trading at a premium comparatively.
We can also see that U currently 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. Internet - Software stocks are, on average, holding a PEG ratio of 2.12 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 66, placing it within the top 27% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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