In the latest trading session, Unity Software Inc. (U) closed at $29.32, marking a -2.88% move from the previous day. Elsewhere, the Dow gained 1.14%, while the tech-heavy Nasdaq lost 0.8%.
Prior to today's trading, shares of the company had gained 3.32% outpaced the Computer and Technology sector's loss of 5.47% and the S&P 500's loss of 1.43%.
The investment community will be paying close attention to the earnings performance of Unity Software Inc. in its upcoming release. In that report, analysts expect Unity Software Inc. to post earnings of $0.24 per share. This would mark year-over-year growth of 192.31%. In the meantime, our current consensus estimate forecasts the revenue to be $510.89 million, indicating a 15.86% growth compared to the corresponding quarter of the prior year.
U's full-year Zacks Consensus Estimates are calling for earnings of $1.03 per share and revenue of $2.11 billion. These results would represent year-over-year changes of +19.77% and +14.14%, respectively.
Investors might also notice recent changes to analyst estimates for Unity Software Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 5.65% higher. Unity Software Inc. is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Unity Software Inc. is holding a Forward P/E ratio of 29.22. For comparison, its industry has an average Forward P/E of 19.52, 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 1.22. 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. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.09.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 81, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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
This article originally published on Zacks Investment Research (zacks.com).