In the latest close session, UiPath (PATH) was down 7.68% at $15.03. This change lagged the S&P 500's daily loss of 0.53%. At the same time, the Dow lost 0.71%, and the tech-heavy Nasdaq lost 0.93%.
The enterprise automation software developer's shares have seen an increase of 29.93% over the last month, surpassing the Computer and Technology sector's gain of 1.25% and the S&P 500's gain of 1.13%.
The investment community will be paying close attention to the earnings performance of UiPath in its upcoming release. The company's upcoming EPS is projected at $0.14, signifying a 27.27% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $392.62 million, indicating a 10.71% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $0.65 per share and a revenue of $1.57 billion, demonstrating changes of +22.64% and +10.07%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for UiPath. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. UiPath is currently sporting a Zacks Rank of #1 (Strong Buy).
With respect to valuation, UiPath is currently being traded at a Forward P/E ratio of 25.11. This expresses a discount compared to the average Forward P/E of 29.31 of its industry.
We can additionally observe that PATH currently boasts a PEG ratio of 1.04. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 2.1.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 71, putting it in the top 29% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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UiPath, Inc. (PATH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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