UiPath (PATH) closed at $12.15 in the latest trading session, marking a -3.11% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.84%. Elsewhere, the Dow lost 0.34%, while the tech-heavy Nasdaq lost 1.43%.
The enterprise automation software developer's shares have seen a decrease of 21.77% over the last month, not keeping up with the Computer and Technology sector's gain of 1.75% and the S&P 500's gain of 1.8%.
The investment community will be paying close attention to the earnings performance of UiPath in its upcoming release. The company is forecasted to report an EPS of $0.25, showcasing a 3.85% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $464.86 million, up 9.73% from the year-ago period.
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 0%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for UiPath. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. UiPath currently has a Zacks Rank of #1 (Strong Buy).
With respect to valuation, UiPath is currently being traded at a Forward P/E ratio of 16.39. This signifies a discount in comparison to the average Forward P/E of 22.25 for its industry.
One should further note that PATH currently holds a PEG ratio of 0.68. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software industry currently had an average PEG ratio of 1.24 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 37% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
UiPath, Inc. (PATH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
