Unity Software Inc. U shares rallied 13.5% in the last trading session to close at $19.45. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 12.5% loss over the past four weeks.
Unity Software shares are benefiting from accelerating Vector ad platform momentum, a recovering Create business and growing optimism around AI-driven product expansion and runtime data integration.
This company is expected to post quarterly earnings of $0.21 per share in its upcoming report, which represents a year-over-year change of +210.5%. Revenues are expected to be $488.43 million, up 12.3% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Unity Software, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on U going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Unity Software is a member of the Zacks Internet - Software industry. One other stock in the same industry, Arista Networks ANET, finished the last trading session 1.5% lower at $120.77. ANET has returned -5.9% over the past month.
Arista Networks' consensus EPS estimate for the upcoming report has changed -0.1% over the past month to $0.81. Compared to the company's year-ago EPS, this represents a change of +24.6%. Arista Networks currently boasts a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).