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UiPath (PATH) Suffers a Larger Drop Than the General Market: Key Insights

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In the latest trading session, UiPath (PATH - Free Report) closed at $11.77, marking a -2.04% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.37%. Elsewhere, the Dow saw a downswing of 0.74%, while the tech-heavy Nasdaq depreciated by 0.03%.

Heading into today, shares of the enterprise automation software developer had lost 6.54% over the past month, lagging the Computer and Technology sector's gain of 4.58% and the S&P 500's gain of 2.68%.

Market participants will be closely following the financial results of UiPath in its upcoming release. The company's upcoming EPS is projected at $0.08, signifying a 100.00% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $347.82 million, indicating a 9.98% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.56 per share and revenue of $1.55 billion. These totals would mark changes of +5.66% and +8.49%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for UiPath. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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, 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, there's been no change in the Zacks Consensus EPS estimate. Right now, UiPath possesses a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that UiPath has a Forward P/E ratio of 21.59 right now. This signifies a discount in comparison to the average Forward P/E of 28.48 for its industry.

We can additionally observe that PATH currently boasts a PEG ratio of 1.17. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 2.18.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 73, this industry ranks in the top 30% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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