2 Bargain Stocks for 2025: Unity Software and Roku

Unity Software and Roku are two discounted stocks with growth potential that isn't reflected in their valuation. Unity's new leadership has improved profitability, and its Unity 6 game engine has seen solid adoption trends. Roku's digital advertising business has potential, with steady revenue growth and a prime candidate for bargains in the market. Both stocks offer attractive upside and could outperform over the next few years.

Unity Software Inc. (U) and Roku (NASDAQ: ROKU) have both experienced significant market downturns, leading to discounted valuations that may not fully reflect their growth potential. Despite these challenges, both companies offer attractive upside and could outperform over the next few years.

Unity Software Inc.

Unity Software Inc. (U) closed at $32.77 on July 2, 2025, marking a -1.71% move from the previous day [1]. The company's stock has witnessed a gain of 42.48% over the previous month, outperforming the Computer and Technology sector's gain of 6.84% and the S&P 500's gain of 4.61% [1]. Unity's new leadership has improved profitability, and its Unity 6 game engine has seen solid adoption trends, with the latest version, Unity 6.1, introducing enhancements such as the Entity Component System (ECS) and DOTS framework to optimize performance [3].

The company is expected to release its earnings on August 6, 2025, with EPS of -$0.25, up 21.88% from the prior-year quarter, and revenue of $425.83 million, down 5.21% [1]. The Zacks Consensus Estimates anticipate annual earnings of -$0.8 per share and revenue of $1.79 billion for the fiscal year ending December 31, 2025 [1]. Unity Software Inc. currently has a Zacks Rank of #2 (Buy), indicating a strong investment opportunity [1].

Roku

Roku (NASDAQ: ROKU) stock has experienced a significant decline, down more than 80% from its all-time high, trading at more than 80% below its peak valuation [2]. Despite this, Roku's streaming platform continues to attract customers, streaming channels, and advertisers, aggregating these parties into one ecosystem [2]. The company's partnership with Amazon provides access to each other's advertising audiences, creating the world's largest authenticated connected TV footprint [2].

Roku's growth drivers include steady revenue growth and a prime candidate for bargains in the market. Cathie Wood's Ark Invest has a 2026 price target of $605 per share for Roku, driven by expectations of video ad growth [2]. However, investors should note that Roku has disappointed in recent quarters, with profits giving way to losses amid slumping ad spend, and the company does not expect a return to positive operating income until 2026 [2].

Conclusion

Unity Software Inc. and Roku both offer attractive upside potential, with discounted valuations that may not fully reflect their growth prospects. Unity's new leadership and Unity 6 game engine's adoption trends, along with Roku's digital advertising business and strategic partnerships, position both companies for potential outperformance over the next few years.

References

[1] https://www.nasdaq.com/articles/unity-software-inc-u-stock-falls-amid-market-uptick-what-investors-need-know-0
[2] https://www.aol.com/could-roku-stock-10x-2030-080500657.html
[3] https://medium.com/@expertappdevs/unity-6-1-a-new-era-in-game-development-82a17aa60e96