UiPath (PATH) closed at $10.93 in the latest trading session, marking a -2.58% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.08%. Elsewhere, the Dow saw a downswing of 0.51%, while the tech-heavy Nasdaq appreciated by 0.35%.
Shares of the enterprise automation software developer have depreciated by 15.83% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.95%, and the S&P 500's gain of 1.21%.
Investors will be eagerly watching for the performance of UiPath in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.08, reflecting a 100% increase from the same quarter last 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 note any recent changes to analyst estimates for UiPath. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. UiPath is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that UiPath has a Forward P/E ratio of 20.17 right now. This indicates a discount in contrast to its industry's Forward P/E of 28.8.
Meanwhile, PATH's PEG ratio is currently 1.09. 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. The Internet - Software industry currently had an average PEG ratio of 2.18 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 69, this industry ranks in the top 28% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much 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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