Unity Software Inc. (NYSE:U) is one of the best oversold stocks to buy under $20. Morgan Stanley lifted the price target on Unity Software Inc. (NYSE:U) to $32 from $30 on March 27, reiterating an Overweight rating on the shares. The rating update came after the company pre-reported “strong” 1Q results, including Vector growing 78% year-over-year and 15% quarter-over-quarter. The firm also cited Unity Software Inc.’s (NYSE:U) plans to exit the ironSource Ad Network, which Morgan Stanley expects to increase growth, margins, and EBITDA.

A software engineer in the company's development center working with a software developers kit.

Unity Software Inc. (NYSE:U) announced preliminary revenue and adjusted EBITDA for the first quarter of 2026 above guidance on March 26, adding that it expects to report revenue in the range of $505 million to $508 million, compared to guidance of $480 million to $490 million. It also anticipated adjusted EBITDA of $130 million to $135 million, compared to guidance of $105 million to $110 million, representing year-over-year growth of 58%. Management attributed the outperformance to Unity Vector, which is anticipated to rise sequentially in fiscal Q1 2026, along with better-than-expected performance in Create.

Unity Software Inc. (NYSE:U) is involved in developing video gaming software and provides software solutions to run, create, and monetize interactive, real-time two-dimensional and three-dimensional content for tablets, consoles, mobile phones, and augmented and virtual reality devices.

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