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UiPath (PATH) Ascends While Market Falls: Some Facts to Note

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In the latest trading session, UiPath (PATH - Free Report) closed at $12.64, marking a +1.85% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.32%. Elsewhere, the Dow saw an upswing of 0.16%, while the tech-heavy Nasdaq depreciated by 0.85%.

The the stock of enterprise automation software developer has risen by 0.4% in the past month, lagging the Business Services sector's gain of 0.64% and the S&P 500's gain of 1.52%.

The upcoming earnings release of UiPath will be of great interest to investors. The company's earnings report is expected on September 5, 2024. In that report, analysts expect UiPath to post earnings of $0.03 per share. This would mark a year-over-year decline of 66.67%. 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.

Any recent changes to analyst estimates for UiPath should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Right now, UiPath possesses a Zacks Rank of #3 (Hold).

In terms of valuation, UiPath is currently trading at a Forward P/E ratio of 32.98. For comparison, its industry has an average Forward P/E of 22.5, which means UiPath is trading at a premium to the group.

One should further note that PATH currently holds a PEG ratio of 1.47. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Technology Services industry had an average PEG ratio of 1.55.

The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 65, positioning it in the top 26% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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