UiPath (PATH) ended the recent trading session at $16.16, demonstrating a -7.07% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.23%. At the same time, the Dow added 0.34%, and the tech-heavy Nasdaq gained 0.8%.
Coming into today, shares of the enterprise automation software developer had gained 38.46% in the past month. In that same time, the Computer and Technology sector gained 6.04%, while the S&P 500 gained 3.57%.
Investors will be eagerly watching for the performance of UiPath in its upcoming earnings disclosure. In that report, analysts expect UiPath to post earnings of $0.14 per share. This would mark year-over-year growth of 27.27%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $392.62 million, up 10.71% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.65 per share and revenue of $1.57 billion, which would represent changes of +22.64% and +10.07%, respectively, from the prior year.
Investors might also notice recent changes to 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate remained stagnant within the past month. UiPath currently has a Zacks Rank of #1 (Strong Buy).
Investors should also note UiPath's current valuation metrics, including its Forward P/E ratio of 26.82. This signifies a discount in comparison to the average Forward P/E of 30.57 for its industry.
Also, we should mention that PATH has a PEG ratio of 1.11. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.18.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 62, placing it within the top 26% of over 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.
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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