In the latest trading session, Unity Software Inc. (U) closed at $25.87, marking a -10.2% move from the previous day. This change lagged the S&P 500's daily loss of 0.84%. At the same time, the Dow lost 0.34%, and the tech-heavy Nasdaq lost 1.43%.
Shares of the company witnessed a loss of 37.25% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 1.75%, and the S&P 500's gain of 1.8%.
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 February 11, 2026. In that report, analysts expect Unity Software Inc. to post earnings of $0.2 per share. This would mark year-over-year growth of 166.67%. At the same time, our most recent consensus estimate is projecting a revenue of $490.23 million, reflecting a 7.25% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.82 per share and a revenue of $1.84 billion, signifying shifts of +148.81% and 0%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Unity Software Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Unity Software Inc. is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Unity Software Inc. is presently being traded at a Forward P/E ratio of 31.03. Its industry sports an average Forward P/E of 22.25, so one might conclude that Unity Software Inc. is trading at a premium comparatively.
Also, we should mention that U has a PEG ratio of 3.45. 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 average PEG ratio for the Internet - Software industry stood at 1.24 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 89, finds itself in the top 37% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much 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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