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In the latest trading session, UiPath (PATH) closed at $13.45, marking a +0.9% move from the previous day. This change outpaced the S&P 500's 0.61% gain on the day. Meanwhile, the Dow experienced a rise of 0.3%, and the technology-dominated Nasdaq saw an increase of 1.28%.
The enterprise automation software developer's shares have seen an increase of 1.52% over the last month, surpassing the Business Services sector's gain of 0.72% and falling behind the S&P 500's gain of 2.08%.
The investment community will be paying close attention to the earnings performance of UiPath in its upcoming release. The company's upcoming EPS is projected at $0.19, signifying a 13.64% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $424.86 million, up 4.84% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.47 per share and a revenue of $1.43 billion, indicating changes of -12.96% and +9.39%, respectively, from the former year.
Investors should also take note of any recent adjustments 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.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 has moved 4.84% higher. UiPath is currently sporting a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, UiPath is currently exchanging hands at a Forward P/E ratio of 28.59. This represents a premium compared to its industry's average Forward P/E of 23.69.
We can additionally observe that PATH currently boasts a PEG ratio of 1.48. 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. The Technology Services was holding an average PEG ratio of 1.48 at yesterday's closing price.