Unity Software Inc. (U) closed at $43.00 in the latest trading session, marking a +1.56% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.5%. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, added 0.43%.
Coming into today, shares of the company had lost 6.22% in the past month. In that same time, the Computer and Technology sector lost 0.15%, while the S&P 500 gained 0.18%.
Investors will be eagerly watching for the performance of Unity Software Inc. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 11, 2026. The company is expected to report EPS of $0.2, up 166.67% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $490.23 million, indicating a 7.25% increase compared to the same quarter of the previous year.
U's full-year Zacks Consensus Estimates are calling for earnings of $0.82 per share and revenue of $1.84 billion. These results would represent year-over-year changes of +148.81% and 0%, respectively.
Investors should also note any recent changes to analyst estimates for Unity Software Inc. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Unity Software Inc. holds a Zacks Rank of #2 (Buy).
In terms of valuation, Unity Software Inc. is presently being traded at a Forward P/E ratio of 45.61. For comparison, its industry has an average Forward P/E of 23.59, which means Unity Software Inc. is trading at a premium to the group.
It's also important to note that U currently trades at a PEG ratio of 5.07. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. U's industry had an average PEG ratio of 1.4 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 31% 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.
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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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