Back to top

Image: Bigstock

UiPath (PATH) Declines More Than Market: Some Information for Investors

Read MoreHide Full Article

UiPath (PATH - Free Report) closed the most recent trading day at $21.41, moving -1.79% from the previous trading session. This move lagged the S&P 500's daily loss of 0.95%. On the other hand, the Dow registered a loss of 1.09%, and the technology-centric Nasdaq decreased by 0.84%.

The enterprise automation software developer's shares have seen a decrease of 11.53% over the last month, not keeping up with the Business Services sector's loss of 0.45% and the S&P 500's gain of 1.78%.

The investment community will be closely monitoring the performance of UiPath in its forthcoming earnings report. The company is expected to report EPS of $0.11, unchanged from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $332.84 million, indicating a 14.93% upward movement from the same quarter last year.

PATH's full-year Zacks Consensus Estimates are calling for earnings of $0.57 per share and revenue of $1.52 billion. These results would represent year-over-year changes of +5.56% and +15.86%, respectively.

Investors should also note any recent changes to analyst estimates for UiPath. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 82.09% higher. UiPath is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, UiPath currently has a Forward P/E ratio of 38.06. This signifies a premium in comparison to the average Forward P/E of 24.6 for its industry.

Meanwhile, PATH's PEG ratio is currently 1.7. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Technology Services was holding an average PEG ratio of 1.7 at yesterday's closing price.

The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


UiPath, Inc. (PATH) - free report >>

Published in