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Unity Software Inc. (U) Falls More Steeply Than Broader Market: What Investors Need to Know

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Unity Software Inc. (U - Free Report) closed at $21.87 in the latest trading session, marking a -1.09% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.18%. Meanwhile, the Dow experienced a drop of 0.8%, and the technology-dominated Nasdaq saw an increase of 0.27%.

The the stock of company has risen by 6.25% in the past month, lagging the Computer and Technology sector's gain of 6.6% and overreaching the S&P 500's gain of 4.46%.

The investment community will be paying close attention to the earnings performance of Unity Software Inc. in its upcoming release. The company is slated to reveal its earnings on November 7, 2024. The company's upcoming EPS is projected at -$0.39, signifying a 316.67% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $427.99 million, showing a 21.36% drop compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$1.86 per share and revenue of $1.76 billion. These totals would mark changes of -553.66% and -19.5%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Unity Software Inc. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Unity Software Inc. is holding a Zacks Rank of #3 (Hold) right now.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 64, which puts it in the top 26% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow U in the coming trading sessions, be sure to utilize Zacks.com.


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