Yahoo Finance Unity Software Inc. (U) Stock Sinks As Market Gains: What You Should Know
Unity Software Inc. (U) closed at $28.34 in the latest trading session, marking a -1.08% move from the prior day. This move lagged the S&P 500's daily gain of 0.09%. At the same time, the Dow added 0.2%, and the tech-heavy Nasdaq lost 4.87%.
Prior to today's trading, shares of the company had lost 0.24% over the past month. This has lagged the Computer and Technology sector's gain of 0.98% and the S&P 500's gain of 3.31% in that time.
Unity Software Inc. will be looking to display strength as it nears its next earnings release, which is expected to be May 10, 2023. The company is expected to report EPS of -$0.05, up 37.5% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $477.42 million, up 49.13% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.19 per share and revenue of $2.1 billion, which would represent changes of +146.34% and +51.01%, respectively, from the prior year.
Any recent changes to analyst estimates for Unity Software Inc. should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 remained stagnant within the past month. Unity Software Inc. currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Unity Software Inc. has a Forward P/E ratio of 149.48 right now. For comparison, its industry has an average Forward P/E of 41.57, which means Unity Software Inc. is trading at a premium to the group.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 71, putting it in the top 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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 Report
