UiPath (PATH) ended the recent trading session at $12.59, demonstrating a +2.11% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.01%. Meanwhile, the Dow experienced a drop of 0.32%, and the technology-dominated Nasdaq saw an increase of 0.05%.
The enterprise automation software developer's stock has dropped by 0.32% in the past month, falling short of the Computer and Technology sector's gain of 7.44% and the S&P 500's gain of 5.37%.
The investment community will be closely monitoring the performance of UiPath in its forthcoming earnings report. The company's upcoming EPS is projected at $0.08, signifying a 100.00% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $347.82 million, indicating a 9.98% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.56 per share and revenue of $1.55 billion, indicating changes of +5.66% and +8.49%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for UiPath. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, UiPath possesses a Zacks Rank of #1 (Strong Buy).
In terms of valuation, UiPath is presently being traded at a Forward P/E ratio of 22.17. This denotes a discount relative to the industry average Forward P/E of 28.43.
It is also worth noting that PATH currently has a PEG ratio of 1.2. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 2.14.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 77, positioning it in the top 32% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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UiPath, Inc. (PATH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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