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Here's Why UiPath (PATH) Fell More Than Broader Market
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UiPath (PATH - Free Report) closed the latest trading day at $10.75, indicating a -1.29% change from the previous session's end. The stock fell short of the S&P 500, which registered a loss of 0.77% for the day. On the other hand, the Dow registered a loss of 0.6%, and the technology-centric Nasdaq decreased by 1.05%.
Shares of the enterprise automation software developer have depreciated by 8.72% over the course of the past month, underperforming the Business Services sector's loss of 4.16% and the S&P 500's loss of 5.85%.
The investment community will be paying close attention to the earnings performance of UiPath in its upcoming release. The company is predicted to post an EPS of $0.03, indicating a 66.67% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $302.92 million, indicating a 5.43% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.38 per share and a revenue of $1.41 billion, representing changes of -29.63% and +7.6%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for UiPath. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. UiPath currently has a Zacks Rank of #3 (Hold).
Investors should also note UiPath's current valuation metrics, including its Forward P/E ratio of 28.94. This valuation marks a premium compared to its industry's average Forward P/E of 21.57.
Also, we should mention that PATH has a PEG ratio of 1.29. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Technology Services was holding an average PEG ratio of 1.45 at yesterday's closing price.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 100, putting it in the top 40% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Here's Why UiPath (PATH) Fell More Than Broader Market
UiPath (PATH - Free Report) closed the latest trading day at $10.75, indicating a -1.29% change from the previous session's end. The stock fell short of the S&P 500, which registered a loss of 0.77% for the day. On the other hand, the Dow registered a loss of 0.6%, and the technology-centric Nasdaq decreased by 1.05%.
Shares of the enterprise automation software developer have depreciated by 8.72% over the course of the past month, underperforming the Business Services sector's loss of 4.16% and the S&P 500's loss of 5.85%.
The investment community will be paying close attention to the earnings performance of UiPath in its upcoming release. The company is predicted to post an EPS of $0.03, indicating a 66.67% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $302.92 million, indicating a 5.43% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.38 per share and a revenue of $1.41 billion, representing changes of -29.63% and +7.6%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for UiPath. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. UiPath currently has a Zacks Rank of #3 (Hold).
Investors should also note UiPath's current valuation metrics, including its Forward P/E ratio of 28.94. This valuation marks a premium compared to its industry's average Forward P/E of 21.57.
Also, we should mention that PATH has a PEG ratio of 1.29. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Technology Services was holding an average PEG ratio of 1.45 at yesterday's closing price.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 100, putting it in the top 40% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.