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UiPath (PATH) Falls More Steeply Than Broader Market: What Investors Need to Know

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UiPath (PATH - Free Report) closed the most recent trading day at $15.93, moving -4.55% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.63%. At the same time, the Dow lost 0.65%, and the tech-heavy Nasdaq lost 0.47%.

Shares of the enterprise automation software developer witnessed a gain of 41.2% over the previous month, beating the performance of the Computer and Technology sector with its gain of 1.9%, and the S&P 500's gain of 0.92%.

Investors will be eagerly watching for the performance of UiPath in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.14, reflecting a 27.27% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $392.62 million, up 10.71% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.65 per share and a revenue of $1.57 billion, indicating changes of +22.64% and +10.07%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for UiPath. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. UiPath is currently sporting a Zacks Rank of #1 (Strong Buy).

Investors should also note UiPath's current valuation metrics, including its Forward P/E ratio of 25.74. This expresses a discount compared to the average Forward P/E of 29.25 of its industry.

Meanwhile, PATH's PEG ratio is currently 1.07. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software was holding an average PEG ratio of 1.98 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 62, putting it in the top 26% of all 250+ industries.

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.

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


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