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Why UiPath (PATH) Dipped More Than Broader Market Today

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UiPath (PATH - Free Report) closed the latest trading day at $12.44, indicating a -1.19% change from the previous session's end. This move lagged the S&P 500's daily loss of 0.39%. Meanwhile, the Dow lost 0.27%, and the Nasdaq, a tech-heavy index, lost 0.38%.

The enterprise automation software developer's stock has climbed by 23.31% in the past month, exceeding the Computer and Technology sector's gain of 19.26% and the S&P 500's gain of 13.07%.

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. The company's upcoming EPS is projected at $0.10, signifying a 23.08% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $332.33 million, indicating a 0.83% downward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.52 per share and a revenue of $1.53 billion, indicating changes of -1.89% and +6.72%, respectively, from the former year.

Investors might also notice 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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, the Zacks Consensus EPS estimate has remained steady. Currently, UiPath is carrying a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that UiPath has a Forward P/E ratio of 24.1 right now. This expresses a discount compared to the average Forward P/E of 28.98 of its industry.

Meanwhile, PATH's PEG ratio is currently 1.27. 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 2.22 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 73, placing it within the top 30% of over 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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