Why UiPath (PATH) Outpaced the Stock Market Today
In the latest trading session, UiPath (PATH) closed at $19.85, marking a +1.9% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 1.03%. Elsewhere, the Dow saw an upswing of 0.46%, while the tech-heavy Nasdaq appreciated by 1.19%.
Prior to today's trading, shares of the enterprise automation software developer had lost 8.16% over the past month. This has lagged the Business Services sector's loss of 3.42% and the S&P 500's loss of 1.57% in that time.
The investment community will be closely monitoring the performance of UiPath in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.11, reflecting no change from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $332.84 million, showing a 14.93% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.57 per share and revenue of $1.52 billion, which would represent changes of +5.56% and +15.86%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for UiPath. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 remained unchanged. As of now, UiPath holds a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, UiPath is currently exchanging hands at a Forward P/E ratio of 34.01. This valuation marks a premium compared to its industry's average Forward P/E of 23.12.
It's also important to note that PATH currently trades at a PEG ratio of 1.51. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Technology Services industry was having an average PEG ratio of 1.51.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 87, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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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UiPath, Inc. (PATH) : Free Stock Analysis Report