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UiPath (PATH) Declines More Than Market: Some Information for Investors

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UiPath (PATH - Free Report) closed at $14.14 in the latest trading session, marking a -1.7% move from the prior day. This change lagged the S&P 500's 0.43% loss on the day. Meanwhile, the Dow lost 1.01%, and the Nasdaq, a tech-heavy index, lost 0.47%.

The enterprise automation software developer's shares have seen an increase of 6.91% over the last month, not keeping up with the Business Services sector's gain of 18.96% and outstripping the S&P 500's gain of 2.6%.

Analysts and investors alike will be keeping a close eye on the performance of UiPath in its upcoming earnings disclosure. The company's earnings report is set to go public on March 12, 2025. It is anticipated that the company will report an EPS of $0.19, marking a 13.64% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $424.75 million, showing a 4.81% escalation compared to the year-ago quarter.

Investors should also pay attention to any latest changes in analyst estimates for UiPath. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. UiPath currently has a Zacks Rank of #3 (Hold).

From a valuation perspective, UiPath is currently exchanging hands at a Forward P/E ratio of 29.8. This denotes a premium relative to the industry's average Forward P/E of 23.63.

We can additionally observe that PATH currently boasts a PEG ratio of 1.55. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Technology Services industry had an average PEG ratio of 1.55 as trading concluded yesterday.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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