My Top Tech IPO to Buy in February
2020 was a record year for IPOs, and this year is set for plenty more hyped technology upstarts to make their public trading debuts. But my top pick among the 2020 IPO class remains my favorite stock in Feb. 2021: Unity Software (NYSE: U).
Unity stock isn't cheap, but if you plan on hopping aboard for the entirety of the current decade and beyond, it's a buy. Here's why I think so.
Before diving into why I like Unity so much, I'd be remiss if I didn't mention how "expensive" this stock is. Valuing a company is subjective, but most would agree Unity falls into the premium price tag camp. Valued at a market cap of over $40.6 billion as of this writing, shares trade for 46 times trailing 12-month sales and 33 times one-year forward revenue estimates (the company has yet to report fourth-quarter earnings, which are due out on Feb. 4). That implies the average Wall Street analyst expects the company's revenue to continue growing at the same rate it did through the first nine months of 2020. Specifically, management forecasted full-year 2020 revenue to be at least 39% higher than 2019, totaling $754 million.
Source Fool.com