Gaming software developer Unity (U) saw its shares rise more than 15% yesterday in Tuesday’s trading session. And so far today on Wednesday, shares picked up where they left off – up another 3%. This all comes from an announcement that the company is claiming its stake in the AI landscape with a revolutionary marketplace offering.
Unity creates software and tools that other gaming companies use to create their products. But now, they’ve set their sights on creating the hottest marketplace in the game development industry.
Game developers (the company’s target customer) will be able to browse the marketplace to find software that can automate game dialogue, textures, or graphics. These software tools will be listed on the marketplace by AI companies themselves – such as independent companies Inworld AI or Polyhive.
The company’s CEO, John Riccitiello, says that AI is inescapable in all industries, including gaming. Its role in this industry will be in making it easier, faster, and cheaper to create video games.
On top of all this hype, Wells Fargo analyst Brian Fitzgerald upgraded his stance on Unity yesterday, bolstering the trend that took hold of this stock. He raised his target price to $48 with an overweight rating, citing an attractive buying opportunity at current prices.
That being said, is this a good time to buy U? Before all this news, shares were already climbing over the past few months – up 55% in the last 30 days alone. You’re wondering if all this hype is substantiated, though. And a clear answer awaits you below.
We’ve taken a look at U through the VectorVest stock analyzing software and have 3 key insights to share with you that will help you make your next move with confidence.
While U Has Poor Upside Potential and Safety, the Timing is Excellent for This Stock Right Now
The VectorVest system helps you win more trades with less work (and less stress) by telling you what to buy when to buy it, and when to sell it. It’s outperformed the S&P 500 by 10x over the past 20 years and counting, all thanks to a proprietary stock-rating system.
You’re given all the information you need in 3 simple ratings: relative value (RV), relative safety (RS), and relative timing (RT). Each of these sits on a scale of 0.00-2.00, with 1.00 being the average. This makes interpretation quick and easy.
But it gets even easier. Because based on the overall VST rating for a stock, the system offers a clear buy, sell, or hold recommendation - at any given time. As for U, here’s what we uncovered:
- Poor Upside Potential: The RV rating compares a stock’s long-term price appreciation potential to AAA corporate bond rates & risk. And despite the dire situation this company finds itself in, it still has a good RV rating of 1.17. Moreover, the stock is undervalued at its price today - its current value is $0.94/share.
- Poor Safety: In terms of risk, U also has poor safety. This is reflected by the RS rating of 0.69, which is calculated through an analysis of the company’s financial consistency & predictability, debt-to-equity ratio, and business longevity.
- Excellent Timing: The one thing this stock does have going for it, though, is excellent timing - as confirmed by the RT rating of 1.84. The stock had a strong, positive price trend over the past few months, and this has been bolstered by Tuesday’s news. This rating is based on the direction, dynamics, and magnitude of the stock’s price movement day over day, week over week, quarter over quarter, and year over year.
All things considered, U has a very good overall VST rating of 1.28. But, is this skewed by the excellent RT rating? Does poor upside potential and safety outweigh the strong, positive price trend behind this stock - or is it the other way around?
No need to play the guessing game or let emotion influence your decision-making. Get a clear buy, sell, or hold recommendation right now through a free stock analysis at VectorVest.
Want These Types of Insights at Your Fingertips so You Can Win More Trades?
Use VectorVest to analyze any stock free. VectorVest is the only stock analysis tool and portfolio management system that analyzes, ranks and graphs over 18,000 stocks each day for value, safety, and timing and gives a clear buy, sell or hold rating on every stock, every day.
VectorVest advocates buying safe, undervalued stocks, rising in price. As for U, the stock has poor upside potential and safety, but excellent timing - with a price trend that has been strengthened on Tuesday’s news.
Before you invest, check VectorVest! Click here to ANALYZE ANY STOCK FREE and see our system in action!