Strength Seen in Unity Software Inc. (U): Can Its 6.4% Jump Turn into More Strength?
Unity Software Inc. U shares soared 6.4% in the last trading session to close at $41.04. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 37.1% gain over the past four weeks.
The upswing in Unity's shares can be attributed to its partnership with Apple related to the iPhone-maker's latest Vision Pro mixed reality headset. Unity will deliver 3D enabled games and apps to Apple’s Vision Pro.
This company is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year change of +133.3%. Revenues are expected to be $514.18 million, up 73.1% 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 Inc., 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 #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Unity Software Inc. is part of the Zacks Internet - Software industry. SolarWinds SWI, another stock in the same industry, closed the last trading session 1.8% higher at $10.23. SWI has returned 15.9% in the past month.
SolarWinds' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.17. Compared to the company's year-ago EPS, this represents a change of -19.1%. SolarWinds currently boasts a Zacks Rank of #3 (Hold).
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