Latest news with #UnitySoftware
Yahoo
4 days ago
- Business
- Yahoo
Unity Software Inc. (U) Stock Falls Amid Market Uptick: What Investors Need to Know
In the latest trading session, Unity Software Inc. (U) closed at $32.77, marking a -1.71% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.4%. At the same time, the Dow added 0.47%, and the tech-heavy Nasdaq gained 0.24%. Shares of the company witnessed a gain of 42.48% over the previous month, beating the performance of the Computer and Technology sector with its gain of 6.84%, and the S&P 500's gain of 4.61%. The investment community will be closely monitoring the performance of Unity Software Inc. in its forthcoming earnings report. The company is scheduled to release its earnings on August 6, 2025. The company is expected to report EPS of -$0.25, up 21.88% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $425.83 million, down 5.21% from the prior-year quarter. For the annual period, the Zacks Consensus Estimates anticipate earnings of -$0.8 per share and a revenue of $1.79 billion, signifying shifts of +52.38% and -1.02%, respectively, from the last year. Investors should also pay attention to any latest changes in analyst estimates for Unity Software Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model. 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.85% increase. Unity Software Inc. currently has a Zacks Rank of #2 (Buy). The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 79, putting it in the top 32% of all 250+ industries. The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Unity Software Inc. (U) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Unity Software Inc. (U) is Attracting Investor Attention: Here is What You Should Know
Unity Software Inc. (U) has been one of the most searched-for stocks on lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term. Shares of this company have returned +38.3% over the past month versus the Zacks S&P 500 composite's +5.7% change. The Zacks Internet - Software industry, to which Unity Software belongs, has gained 4.4% over this period. Now the key question is: Where could the stock be headed in the near term? Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision. Earnings Estimate Revisions Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. For the current quarter, Unity Software is expected to post a loss of $0.25 per share, indicating a change of +21.9% from the year-ago quarter. The Zacks Consensus Estimate has changed +2.4% over the last 30 days. The consensus earnings estimate of -$0.8 for the current fiscal year indicates a year-over-year change of +52.4%. This estimate has changed +1.9% over the last 30 days. For the next fiscal year, the consensus earnings estimate of $0.65 indicates a change of +18.1% from what Unity Software is expected to report a year ago. Over the past month, the estimate has changed -2.4%. Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Unity Software is rated Zacks Rank #2 (Buy). The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial. For Unity Software, the consensus sales estimate for the current quarter of $425.83 million indicates a year-over-year change of -5.2%. For the current and next fiscal years, $1.79 billion and $1.94 billion estimates indicate -1% and +8.4% changes, respectively. Last Reported Results and Surprise History Unity Software reported revenues of $435 million in the last reported quarter, representing a year-over-year change of -5.5%. EPS of -$0.19 for the same period compares with $0.15 a year ago. Compared to the Zacks Consensus Estimate of $411.92 million, the reported revenues represent a surprise of +5.6%. The EPS surprise was +50%. The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period. Valuation No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Unity Software is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. Conclusion The facts discussed here and much other information on might help determine whether or not it's worthwhile paying attention to the market buzz about Unity Software. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Unity Software Inc. (U) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
21-07-2025
- Business
- Yahoo
These Growth Stocks Are Down 36% to 86% From Their All-Time Highs. Is It Time to Buy Them?
Key Points Reddit's investments in AI and proprietary data could help the company deliver strong growth for years to come. Unity Software is a fallen growth stock with a promising turnaround strategy. 10 stocks we like better than Reddit › Reddit (NYSE: RDDT) and Unity Software (NYSE: U) are two former high-flying growth stocks that are trading well off their previous peaks. Sometimes stocks fall for good reasons, but at other times, a discounted share price can be a great buying opportunity. Let's look at why these stocks fell, how the underlying businesses are performing, and whether they can recover their former glory. 1. Reddit Reddit has reported strong revenue growth since completing its initial public offering (IPO) last year. But the stock has fallen from its recent highs over concerns about the potential for a slowing ad market and competition in the digital advertising market. The recent sell-off is a good buying opportunity, as Wall Street still underestimates the power of Reddit's highly engaged user base. Despite uncertainty with the ad market and Wall Street's concerns over competition, Reddit reported robust revenue growth in the first quarter. Daily active unique users grew 31% year over year to 108 million, while ad revenue surged 61% to $359 million. In June, Reddit announced new ad tools that promise to drive more advertising demand. These new tools are powered by artificial intelligence (AI) and will provide marketers real-time insights into discussions happening on Reddit. Reddit is also bringing AI features to its users. Reddit Answers reached 1 million weekly users in Q1. It's basically a ChatGPT-style chatbot that pulls answers from all the discussions happening on Reddit's platform. Reddit is growing much faster than other social media companies like Pinterest, Meta Platforms, Snap, and even Google's search business. It has a lot of valuable data on its platform, which it's monetizing by licensing it to other AI companies for use in training their models. While the stock has already rebounded about 50% from its recent lows, it's still trading 36% off its all-time high. Analysts are expecting the company to report year-over-year revenue growth of 51% for Q2, according to Yahoo! Finance. Another strong quarter could push the stock higher, but regardless of where the stock trades in the near term, Reddit appears on track to grow into a more valuable business down the road. Its AI investments and data are underappreciated by Wall Street, making the stock worth holding for the long term. 2. Unity Software Unity is one of the most widely used game engines that developers use for making video games. It offers a suite of tools to make games for all the major platforms (mobile, PC, and console). It was a fast-growing business through 2023, regularly reporting more than 20% quarterly revenue growth. But the combination of an expensive valuation amid falling revenue has weighed on the share price the past few years. The stock is down 86% from its previous highs. CEO Matthew Bromberg stepped in last year to turn the business around. Management is exiting non-essential products and services and returning Unity's business to focus on high-growth and high-margin revenue opportunities. Investors looking at Unity's recent financial results won't see much to like. Its "portfolio reset" was responsible for the 6% year-over-year decrease in revenue last quarter. However, Bromberg's strategy could get the business back on track and unlock Unity's full potential, which isn't reflected in the stock's valuation. Unity just completed the migration of its advertising business to its new, AI-powered platform, Unity Vector. This will allow Unity to provide deeper insights in order to deliver better advertising results for its customers. Management indicated that this won't be fully reflected in its Q2 revenue, but Vector puts the company's Grow Solutions segment, which made up two-thirds of the business last quarter, on course to deliver strong growth over the long term. The other part of Unity's business is its Create Solutions segment, which posted an 8% year-over-year decline in revenue last quarter. This includes revenue from the tools Unity sells to game developers. It is planning three important updates to its Unity 6 software this year. One of these updates includes AI features that will help developers build games faster. This could be a significant demand driver for Unity's software. While the company's financials look like a mess, the stock could move higher over the next year as the company returns to profitable growth. Analysts expect revenue to decline 2% for 2025 before growing 9% next year to $1.9 billion. By 2029, analysts expect Unity's focus on investing in more profitable opportunities to grow adjusted earnings per share to $2.34. The stock is currently trading at just 13 times 2029 estimates, which is cheap. This growth stock could trade over 20 times earnings, potentially doubling the share price in the next four years. Should you invest $1,000 in Reddit right now? Before you buy stock in Reddit, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Reddit wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, Pinterest, and Unity Software. The Motley Fool has a disclosure policy. These Growth Stocks Are Down 36% to 86% From Their All-Time Highs. Is It Time to Buy Them? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18-07-2025
- Business
- Yahoo
Are You Looking for a Top Momentum Pick? Why Unity Software Inc. (U) is a Great Choice
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us. Below, we take a look at Unity Software Inc. (U), which currently has a Momentum Style Score of A. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions. It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Unity Software Inc. currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period. You can see the current list of Zacks #1 Rank Stocks here >>> Set to Beat the Market? In order to see if U is a promising momentum pick, let's examine some Momentum Style elements to see if this company holds up. A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area. For U, shares are up 10.72% over the past week while the Zacks Internet - Software industry is down 2.73% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 52.74% compares favorably with the industry's 2.93% performance as well. While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Shares of Unity Software Inc. have increased 63.69% over the past quarter, and have gained 123.09% in the last year. On the other hand, the S&P 500 has only moved 19.7% and 14.09%, respectively. Investors should also take note of U's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now U is averaging 14,861,725 shares for the last 20 days.. Earnings Outlook The Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with U. Over the past two months, 1 earnings estimate moved higher compared to none lower for the full year. This revision helped boost U's consensus estimate, increasing from -$0.90 to -$0.80 in the past 60 days. Looking at the next fiscal year, 1 estimate has moved upwards while there have been no downward revisions in the same time period. Bottom Line Given these factors, it shouldn't be surprising that U is a #2 (Buy) stock and boasts a Momentum Score of A. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Unity Software Inc. on your short list. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Unity Software Inc. (U) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
18-07-2025
- Business
- Yahoo
Why Unity Software Stock Soared on Wednesday
Key Points Jefferies analyst Brent Thill raised his price target on Unity stock to $35 today. Ad spending in mobile games is on the rise, and Unity should benefit from this. Unity stock costs a lot but is growing free cash flow quickly. These 10 stocks could mint the next wave of millionaires › Unity Software (NYSE: U), a 3D graphics software specialist, rocketed 12.7% through 1:05 p.m. ET on Wednesday, and it's not hard to figure out why. This morning, reported that Jefferies analyst Brent Thill raised his price target on Unity by more than 20% to $35 and reiterated his buy recommendation on the stock. What Jefferies says about Unity Citing data from his company's 2Q mobile game ad tech survey, Thill said "overall 2025 ad spend expectations improved off of April" and are now on course for nearly 4% year-over-year growth. Unity's share of this market is growing and "incrementally positive," leading the analyst to raise his earnings estimates for the stock -- and accordingly, his price target. Is Unity stock a buy? Is this price target justified? Perhaps. Unprofitable as calculated according to generally accepted accounting principles (GAAP), Unity does generate substantial positive free cash flow -- $308 million over the last 12 months. On a $14 billion stock, that works out to a 45x price-to-free-cash-flow valuation on the stock. Expensive? Absolutely. And yet, the growth estimates for Unity stock are terrific and potentially terrific enough to make this stock a buy. Analysts polled by S&P Global Market Intelligence forecast Unity will more than triple its free cash flow (FCF) over the next five years to nearly $1 billion in 2030. If that's how things play out, the stock's seemingly excessive valuation could conceivably be justified. Still, going from $308 million to just under $1 billion in five years works out to only a 26% annualized FCF growth rate. I'd prefer to see that go higher to justify the stock's 45x FCF valuation -- or for the stock to pull back a bit before buying any Unity stock myself. Should you buy stock in Unity Software right now? The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $679,653!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,046,308!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 179% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Unity Software. The Motley Fool has a disclosure policy. Why Unity Software Stock Soared on Wednesday was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
