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UiPath (PATH) Stock Slides as Market Rises: Facts to Know Before You Trade

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UiPath (PATH - Free Report) ended the recent trading session at $11.43, demonstrating a -0.87% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.38%. At the same time, the Dow added 0.61%, and the tech-heavy Nasdaq gained 0.03%.

Shares of the enterprise automation software developer have depreciated by 9.21% over the course of the past month, underperforming the Business Services sector's loss of 1.9% and the S&P 500's loss of 3.2%.

The investment community will be closely monitoring the performance of UiPath in its forthcoming earnings report. The company is scheduled to release its earnings on September 5, 2024. It is anticipated that the company will report an EPS of $0.03, marking a 66.67% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $302.92 million, up 5.43% from the year-ago period.

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.

Investors should also note any recent changes to analyst estimates for UiPath. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, UiPath is carrying a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that UiPath has a Forward P/E ratio of 30.65 right now. This indicates a premium in contrast to its industry's Forward P/E of 21.11.

Meanwhile, PATH's PEG ratio is currently 1.37. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Technology Services industry stood at 1.5 at the close of the market yesterday.

The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 35% of all 250+ industries.

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.

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


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