Unity Software Stock: 5 Straight Green Days, Up 37%
Unity Software (U) stock is on a 5-day winning streak, up 36.6% since the run began. That added about $6.1 billion to the company’s market value, which now stands at about $22.7 billion. The stock closed at $51.49 on Friday, November 6, its highest close of the past year.
How The Streak Stacks Up Against The S&P 500
Returns for U and the S&P 500 over the streak and the periods around it, all ending Friday, November 6 and including dividends:
| Return Period | U | S&P 500 |
|---|---|---|
| 1 Day | 5.5% | 0.3% |
| 5 Days (Current Streak) | 36.6% | -2.7% |
| 1 Month (21 Trading Days) | 12.2% | -4.9% |
| 3 Months (63 Trading Days) | 19.5% | -4.6% |
| Year To Date | 16.6% | 8.8% |
| 1 Year (252 Trading Days) | 21.6% | 9.8% |
A Stock-Specific Run, Or A Market Move?
The market explains little of this: the S&P 500 lost 2.7% over the same 5 sessions, including dividends, against Unity Software’s +36.6%. Over the past three months the stock is up 19.5%, a window that includes the streak; over the other 58 sessions of that window it was down 12.5%.
What The Numbers Say About The Rally
On the fundamentals, revenue grew 20.9% over the last twelve months, against a median of 17.9% for S&P 500 Information Technology stocks; and its operating margin is -17.9%, versus a median of 21.6%. Unity Software does not have positive trailing earnings, so there is no meaningful price-to-earnings multiple to compare. The read is mixed: revenue growth above the median on one side, an operating loss on the other.
A climb like this is worth respecting, and worth testing. Our Guidance Momentum screen tracks the stocks whose companies just raised their own forward numbers.
One Hot Stock Is A Story. Thirty Sound Ones Are A Strategy
A streak like this earns a place on your watchlist, and it also earns a question: how much of your outcome do you want depending on one company keeping this up?
The Trefis High Quality (HQ) Portfolio answers it with breadth: roughly 30 businesses picked for consistent cash generation, strong margins, and balance-sheet strength, sized and rebalanced by rules. It has a track record of outpacing a benchmark that combines the S&P 500, the S&P MidCap 400, and the Russell 2000. Follow the story; invest in the strategy.