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UiPath (PATH) Ascends But Remains Behind Market: Some Facts to Note

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UiPath (PATH - Free Report) ended the recent trading session at $23.11, demonstrating a +0.57% swing from the preceding day's closing price. This change lagged the S&P 500's 1.25% gain on the day. Meanwhile, the Dow experienced a rise of 0.97%, and the technology-dominated Nasdaq saw an increase of 1.3%.

Shares of the enterprise automation software developer have appreciated by 1.82% over the course of the past month, outperforming the Business Services sector's gain of 0.44% and the S&P 500's gain of 1.58%.

Analysts and investors alike will be keeping a close eye on the performance of UiPath in its upcoming earnings disclosure. On that day, UiPath is projected to report earnings of $0.08 per share, which would represent a year-over-year decline of 46.67%. Our most recent consensus estimate is calling for quarterly revenue of $383.32 million, up 24.23% from the year-ago period.

Investors should also take note of any recent adjustments 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 company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, UiPath holds a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that UiPath has a Forward P/E ratio of 49.34 right now. This indicates a premium in contrast to its industry's Forward P/E of 24.14.

Meanwhile, PATH's PEG ratio is currently 1.41. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. PATH's industry had an average PEG ratio of 1.44 as of yesterday's close.

The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 81, this industry ranks in the top 33% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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