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UiPath (PATH) Exceeds Market Returns: Some Facts to Consider

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The most recent trading session ended with UiPath (PATH - Free Report) standing at $20.41, reflecting a +1.09% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.12% gain on the day. Elsewhere, the Dow gained 0.34%, while the tech-heavy Nasdaq lost 0.07%.

The the stock of enterprise automation software developer has risen by 6.04% in the past month, leading the Business Services sector's gain of 3.14% and the S&P 500's gain of 4.99%.

Investors will be eagerly watching for the performance of UiPath in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 29, 2024. It is anticipated that the company will report an EPS of $0.11, marking stability compared to the same quarter of the previous year. 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.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.57 per share and a revenue of $1.52 billion, representing changes of +5.56% and +15.86%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for UiPath. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. UiPath currently has a Zacks Rank of #3 (Hold).

From a valuation perspective, UiPath is currently exchanging hands at a Forward P/E ratio of 35.24. This signifies a premium in comparison to the average Forward P/E of 24.94 for its industry.

We can also see that PATH currently has a PEG ratio of 1.57. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Technology Services stocks are, on average, holding a PEG ratio of 1.67 based on yesterday's closing prices.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 57, putting it in the top 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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