UiPath (PATH) closed at $14.27 in the latest trading session, marking a -10.08% move from the prior day. This change lagged the S&P 500's daily loss of 1.17%. At the same time, the Dow lost 0.53%, and the tech-heavy Nasdaq lost 2.04%.
Shares of the enterprise automation software developer witnessed a gain of 9.3% over the previous month, beating the performance of the Computer and Technology sector with its gain of 5.49%, and the S&P 500's gain of 2.12%.
Market participants will be closely following the financial results 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 are projecting earnings of $0.65 per share and revenue of $1.57 billion, which would represent changes of +22.64% and +11.51%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for UiPath. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, UiPath is carrying a Zacks Rank of #1 (Strong Buy).
Digging into valuation, UiPath currently has a Forward P/E ratio of 24.48. Its industry sports an average Forward P/E of 29.38, so one might conclude that UiPath is trading at a discount comparatively.
It is also worth noting that PATH currently has a PEG ratio of 1.01. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry had an average PEG ratio of 2.04 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 77, this industry ranks in the top 32% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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UiPath, Inc. (PATH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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