Unisys Stock is at a 4.92X P/E: Should You Buy, Sell or Retain?

Unisys Corporation UIS is trading at a steep discount relative to its peers, with a forward 12-month price-to-earnings (P/E) ratio of just 4.92X. This is significantly below the industry average of 29.36X and the broader Computer and Technology sector’s 26.09X, suggesting the stock may be undervalued by the market.

Unisys P/E Ratio (Forward 12 Months)

Despite this valuation gap, Unisys shares have slumped 34.8% over the past six months, underperforming the industry’s 12.5% decline. Other industry players like C3.ai AI and SoundHound AI SOUN have fared even worse, dropping 44.6% and 53.1%, respectively, while Genpact G saw a comparatively modest dip of 0.8%.

UIS Stock’s Price Performance

Factors Likely to Aid Unisys Stock

UIS is seeing strong adoption of its device subscription services, with significant contract wins. In the first quarter of 2025, Unisys signed a contract with a global technology company to support 380,000 devices across 14 countries. UIS also secured an agreement with a biotech client to provide workplace services for more than 21,000 devices across several regions.

The company added two technology partners, Easy Vista and Freshworks, to improve the DWS Alliance ecosystem and strengthen IT Service Management platform capabilities. Going forward, UIS expects DSS signings to increase in the second half of the year, which may support growth in the segment.

These contracts serve as entry points for broader service engagements, driving higher-margin expansion into digital workplaces and managed services.

Unisys continues to innovate in artificial intelligence and cybersecurity, launching a Post-Quantum Cryptography assessment service and expanding its AI-driven solutions such as the service experience accelerator. These tools aim to improve client outcomes in areas like threat detection, data optimization and employee productivity.

Unisys, which shares space with C3.ai, SoundHound and Genpact, is executing its long-term strategy centered on software innovation, secure hybrid infrastructure and client-centric service models. These efforts are intended to increase platform stickiness, modernize applications and unlock data value across client ecosystems.

UIS’s Clear Path Forward 2050 strategy is built on three core pillars aimed at strengthening its client ecosystem and driving growth. The company is enhancing its proprietary platforms and industry-specific solutions to offer greater value and encourage wider adoption. It further focuses on enabling secure and efficient data exchange across hybrid IT environments, positioning its platforms as central hubs for data consolidation and analysis. Lastly, Unisys provides specialized services to address clients’ skill gaps and modernize their infrastructure and applications, reinforcing the company’s role at the heart of mission-critical IT operations.

Earnings Estimates Trend & Growth Rate for UIS

Over the past 60 days, the Zacks Consensus Estimate for UIS’ 2025 earnings per share (EPS) has been revised upward, increasing from 25 cents to 58 cents. This upward trend reflects strong analyst confidence in the stock’s near-term prospects. The company is likely to report solid earnings, with projections indicating a 28.9% jump in 2025.

Conversely, industry players like C3.ai earnings in fiscal 2026 are likely to witness year-over-year growth of 12.2%. SoundHound and Genpact earnings in 2025 are anticipated to witness year-over-year growth of 84.6% and 6.1%, respectively.

End Notes

Investors may consider buying Unisys’ stock due to its compelling turnaround potential and deep undervaluation relative to peers. The company is gaining traction in high-value areas such as device subscription services, AI-driven solutions and cybersecurity, supported by major contract wins and expanding strategic partnerships. Its forward-looking strategy, focused on innovation, secure hybrid infrastructure and enterprise modernization, is driving broader client engagement and longer-term revenue visibility.

With growing momentum in business signings, improving operational efficiency and rising analyst confidence, Unisys appears well-positioned to rebound, making it an attractive opportunity for value-focused investors. UIS currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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