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UiPath (PATH) Surpasses Market Returns: Some Facts Worth Knowing

The most recent trading session ended with UiPath (PATH) standing at $12.24, reflecting a +1.58% shift from the previouse trading day's closing. This change outpaced the S&P 500's 1.08% gain on the day. Elsewhere, the Dow gained 0.32%, while the tech-heavy Nasdaq added 1.58%.

Shares of the enterprise automation software developer have appreciated by 0.75% over the course of the past month, outperforming the Business Services sector's loss of 3.28% and the S&P 500's gain of 0.43%.

Investors will be eagerly watching for the performance of UiPath in its upcoming earnings disclosure. 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.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.38 per share and a revenue of $1.41 billion, indicating changes of -29.63% and +7.6%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for UiPath. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. UiPath is currently a Zacks Rank #4 (Sell).

Looking at valuation, UiPath is presently trading at a Forward P/E ratio of 32.03. This denotes a premium relative to the industry's average Forward P/E of 23.07.

It is also worth noting that PATH currently has a PEG ratio of 1.43. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Technology Services industry had an average PEG ratio of 1.41 as trading concluded yesterday.

The Technology Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 144, placing it within the bottom 43% of over 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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UiPath, Inc. (PATH) : Free Stock Analysis Report

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