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Why UiPath (PATH) Dipped More Than Broader Market Today
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In the latest close session, UiPath (PATH - Free Report) was down 7.35% at $10.09. The stock fell short of the S&P 500, which registered a loss of 0.41% for the day. Elsewhere, the Dow saw a downswing of 0.36%, while the tech-heavy Nasdaq depreciated by 0.89%.
Heading into today, shares of the enterprise automation software developer had lost 0.37% over the past month, lagging the Computer and Technology sector's gain of 14.93% and the S&P 500's gain of 9.71%.
Market participants will be closely following the financial results of UiPath in its upcoming release. It is anticipated that the company will report an EPS of $0.15, marking a 36.36% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $397.43 million, indicating a 11.44% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.78 per share and revenue of $1.76 billion. These totals would mark changes of +8.33% and +8.98%, respectively, from last 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 such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 remained stagnant. UiPath currently has a Zacks Rank of #3 (Hold).
Digging into valuation, UiPath currently has a Forward P/E ratio of 13.96. This signifies a discount in comparison to the average Forward P/E of 19.47 for its industry.
Meanwhile, PATH's PEG ratio is currently 0.72. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Internet - Software industry stood at 1.14 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 88, this industry ranks in the top 37% of all industries, numbering over 250.
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.
View the Zacks #1 Rank List
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Why UiPath (PATH) Dipped More Than Broader Market Today
In the latest close session, UiPath (PATH - Free Report) was down 7.35% at $10.09. The stock fell short of the S&P 500, which registered a loss of 0.41% for the day. Elsewhere, the Dow saw a downswing of 0.36%, while the tech-heavy Nasdaq depreciated by 0.89%.
Heading into today, shares of the enterprise automation software developer had lost 0.37% over the past month, lagging the Computer and Technology sector's gain of 14.93% and the S&P 500's gain of 9.71%.
Market participants will be closely following the financial results of UiPath in its upcoming release. It is anticipated that the company will report an EPS of $0.15, marking a 36.36% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $397.43 million, indicating a 11.44% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.78 per share and revenue of $1.76 billion. These totals would mark changes of +8.33% and +8.98%, respectively, from last 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 such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 remained stagnant. UiPath currently has a Zacks Rank of #3 (Hold).
Digging into valuation, UiPath currently has a Forward P/E ratio of 13.96. This signifies a discount in comparison to the average Forward P/E of 19.47 for its industry.
Meanwhile, PATH's PEG ratio is currently 0.72. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Internet - Software industry stood at 1.14 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 88, this industry ranks in the top 37% of all industries, numbering over 250.
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.