UiPath (PATH) closed the most recent trading day at $14.36, moving -3.69% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.41%. At the same time, the Dow lost 0.83%, and the tech-heavy Nasdaq gained 0.91%.
Coming into today, shares of the enterprise automation software developer had lost 11.51% in the past month. In that same time, the Computer and Technology sector gained 0.49%, while the S&P 500 gained 0.38%.
The investment community will be closely monitoring the performance of UiPath in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.25, marking a 3.85% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $464.86 million, indicating a 9.73% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.67 per share and a revenue of $1.59 billion, indicating changes of +26.42% and +11.52%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for UiPath. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 3.06% rise in the Zacks Consensus EPS estimate. UiPath is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that UiPath has a Forward P/E ratio of 22.34 right now. This represents a discount compared to its industry average Forward P/E of 24.04.
We can additionally observe that PATH currently boasts a PEG ratio of 0.95. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Internet - Software industry stood at 1.42 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 78, putting it in the top 32% of all 250+ industries.
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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