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UiPath (PATH) Stock Declines While Market Improves: Some Information for Investors

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UiPath (PATH - Free Report) closed the latest trading day at $12.32, indicating a -0.32% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.08%. Elsewhere, the Dow saw a downswing of 0.12%, while the tech-heavy Nasdaq appreciated by 0.07%.

Prior to today's trading, shares of the enterprise automation software developer had lost 2.52% over the past month. This has lagged the Business Services sector's loss of 0.96% and the S&P 500's loss of 0.21% in that time.

The upcoming earnings release of UiPath will be of great interest to investors. The company is forecasted to report an EPS of $0.03, showcasing a 66.67% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $302.92 million, indicating a 5.43% increase compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.38 per share and revenue of $1.41 billion, indicating changes of -29.63% and +7.6%, respectively, compared to the previous year.

It is also important to note the recent changes to analyst estimates for UiPath. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain 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 #4 (Sell).

In terms of valuation, UiPath is currently trading at a Forward P/E ratio of 32.85. This denotes a premium relative to the industry's average Forward P/E of 23.5.

It is also worth noting that PATH currently has a PEG ratio of 1.46. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Technology Services stocks are, on average, holding a PEG ratio of 1.51 based on yesterday's closing prices.

The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 95, positioning it in the top 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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