In the latest trading session, UiPath (PATH) closed at $12.36, marking a -1.98% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 1.86% for the day. On the other hand, the Dow registered a loss of 0.9%, and the technology-centric Nasdaq decreased by 2.76%.
The enterprise automation software developer's shares have seen an increase of 2.27% over the last month, not keeping up with the Business Services sector's gain of 2.32% and outstripping the S&P 500's gain of 1.01%.
The upcoming earnings release of UiPath will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.07, reflecting a 41.67% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $347.65 million, up 6.67% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.41 per share and revenue of $1.42 billion. These totals would mark changes of -24.07% and +8.74%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for UiPath. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. UiPath is currently a Zacks Rank #3 (Hold).
In the context of valuation, UiPath is at present trading with a Forward P/E ratio of 31.01. Its industry sports an average Forward P/E of 25.56, so one might conclude that UiPath is trading at a premium comparatively.
We can additionally observe that PATH currently boasts a PEG ratio of 1.38. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Technology Services stocks are, on average, holding a PEG ratio of 1.46 based on yesterday's closing prices.
The Technology Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 57, placing it within the top 23% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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