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UiPath (PATH) Outperforms Broader Market: What You Need to Know

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UiPath (PATH - Free Report) closed the most recent trading day at $13.26, moving +1.3% from the previous trading session. This change outpaced the S&P 500's 0.73% gain on the day. Elsewhere, the Dow saw a downswing of 0.64%, while the tech-heavy Nasdaq appreciated by 1.61%.

Heading into today, shares of the enterprise automation software developer had gained 22.22% over the past month, outpacing the Computer and Technology sector's gain of 11.93% and the S&P 500's gain of 9.07% in that time.

The investment community will be paying close attention to the earnings performance of UiPath in its upcoming release. The company is slated to reveal its earnings on May 29, 2025. On that day, UiPath is projected to report earnings of $0.10 per share, which would represent a year-over-year decline of 23.08%. Meanwhile, our latest consensus estimate is calling for revenue of $332.33 million, down 0.83% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.52 per share and revenue of $1.53 billion, indicating changes of -1.89% and +6.72%, respectively, compared to the previous year.

It is also important to note the recent changes to analyst estimates for UiPath. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 6.38% lower. At present, UiPath boasts a Zacks Rank of #3 (Hold).

Looking at its valuation, UiPath is holding a Forward P/E ratio of 25.05. This valuation marks a discount compared to its industry's average Forward P/E of 29.19.

One should further note that PATH currently holds a PEG ratio of 1.32. 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. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 2.16.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 87, this industry ranks in the top 36% of all industries, numbering over 250.

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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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