Unity Software Inc. (U) Rises Yet Lags Behind Market: Some Facts Worth Knowing

Unity Software Inc. (U) closed at $35.02 in the latest trading session, marking a +0.32% move from the previous day. The stock lagged the S&P 500’s daily gain of 0.58%. At the same time, the Dow added 0.91%, and the tech-heavy Nasdaq gained 0.3%.

Coming into today, shares of the company have gained 5.85% in the past month. In that same time, the Computer and Technology sector gained 8.43%, while the S&P 500 gained 4.61%.

The investment community will closely monitor the performance of Unity Software Inc. in its upcoming earnings report. The company is scheduled to release its earnings on February 26, 2024. Meanwhile, our latest consensus estimate is calling for revenue of $536.48 million, up 18.96% from the prior-year quarter.

Any recent changes to analyst estimates for Unity Software Inc. should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, the Zacks Consensus EPS estimate has shifted 4.02% downward. Unity Software Inc. is currently sporting a Zacks Rank of #4 (Sell).

Looking at valuation, Unity Software Inc. is currently trading at a Forward P/E ratio of 40.36. This expresses a premium compared to the average Forward P/E of 32.91 of its industry.

The Internet – Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 75, positioning it in the top 30% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the upcoming trading sessions.

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