UiPath (PATH) closed at $11.70 in the latest trading session, marking a -9.69% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.01% for the day. On the other hand, the Dow registered a loss of 0.13%, and the technology-centric Nasdaq decreased by 0.16%.
The stock of enterprise automation software developer has fallen by 18.91% in the past month, lagging the Computer and Technology sector's loss of 1.54% and the S&P 500's loss of 0.28%.
Investors will be eagerly watching for the performance of UiPath in its upcoming earnings disclosure. 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. Meanwhile, our latest consensus estimate is calling for revenue of $464.86 million, up 9.73% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.67 per share and a revenue of $1.59 billion, signifying shifts of +26.42% and +11.52%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for UiPath. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return 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 #3 (Hold).
Valuation is also important, so investors should note that UiPath has a Forward P/E ratio of 16.93 right now. This expresses a discount compared to the average Forward P/E of 20.43 of its industry.
It's also important to note that PATH currently trades at a PEG ratio of 0.7. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. PATH's industry had an average PEG ratio of 1.13 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 139, putting it in the bottom 44% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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