Unity Software Inc. (U) Stock Drops Despite Market Gains: Important Facts to Note
In the latest market close, Unity Software Inc. (U) reached $34.59, with a -0.66% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 0.08% for the day. Meanwhile, the Dow experienced a drop of 0.31%, and the technology-dominated Nasdaq saw an increase of 0.02%.
The company's stock has dropped by 9.04% in the past month, falling short of the Computer and Technology sector's gain of 2.68% and the S&P 500's gain of 3.52%.
Investors will be eagerly watching for the performance of Unity Software Inc. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 26, 2024. In the meantime, our current consensus estimate forecasts the revenue to be $540.05 million, indicating a 19.75% growth compared to the corresponding quarter of the prior year.
Investors might also notice recent changes to analyst estimates for Unity Software Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Unity Software Inc. boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Unity Software Inc. is currently being traded at a Forward P/E ratio of 38.33. This valuation marks a premium compared to its industry's average Forward P/E of 35.54.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 33, placing it within the top 14% of over 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Unity Software Inc. (U) : Free Stock Analysis Report
