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Unity Software Inc. (U) Dips More Than Broader Markets: What You Should Know

Unity Software Inc. (U) closed the most recent trading day at $26.80, moving -0.63% from the previous trading session. This change lagged the S&P 500's daily loss of 0.04%. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq added 2.14%.

Heading into today, shares of the company had lost 16.86% over the past month, lagging the Computer and Technology sector's gain of 4.01% and the S&P 500's gain of 5.1% in that time.

Wall Street will be looking for positivity from Unity Software Inc. as it approaches its next earnings report date. This is expected to be May 10, 2023. On that day, Unity Software Inc. is projected to report earnings of -$0.05 per share, which would represent year-over-year growth of 37.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $477.42 million, up 49.13% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.19 per share and revenue of $2.1 billion, which would represent changes of +146.34% and +51.01%, respectively, from the prior year.

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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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 remained stagnant. Unity Software Inc. currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Unity Software Inc. has a Forward P/E ratio of 140.71 right now. This valuation marks a premium compared to its industry's average Forward P/E of 41.43.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 62, putting it in the top 25% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.

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