UiPath (PATH) ended the latest trading session at $11.43, moving -0.87% from the previous day’s close. The stock’s change was less than the S&P 500’s daily gain of 0.38%. At the same time, the Dow gained 0.61% and the tech-heavy Nasdaq gained 0.03%.
Shares of the enterprise automation software developer have lost 9.21% over the past month, lagging the Business Services sector’s loss of 1.9% and the S&P 500’s loss of 3.2%.
The investment community will be closely watching UiPath’s performance in its upcoming earnings report. The company is set to release its results on September 5, 2024. The company is expected to report earnings per share of $0.03, down 66.67% from the year-ago quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $302.92 million, up 5.43% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.38 per share and revenue of $1.41 billion, representing year-over-year changes of -29.63% and +7.6%, respectively.
Investors should also pay attention to recent changes in analyst estimates for UiPath. Such recent changes usually indicate a changing landscape in near-term business trends. As a result, optimistic changes in estimates suggest a positive view by analysts about the company’s business health and profitability.
Our research has shown that these estimate changes are directly correlated with where the stock price will move in the near future. To capitalize on this, we have developed the Zacks Rank, a quantitative model that takes these estimate changes into account and provides a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive track record of exceeding expectations, as validated by outside audits. #1 stocks have delivered an average annual return of +25% since 1988. Over the past 30 days, our consensus EPS projection has remained stagnant. Currently, UiPath has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that UiPath currently has a forward P/E of 30.65, which represents a premium compared to the industry’s forward P/E of 21.11.
PATH’s PEG ratio is currently 1.37. Similar to the generally accepted P/E ratio, the PEG ratio also takes into account the company’s forecasted earnings growth. The average PEG ratio for the technology services industry was 1.5 at market close yesterday.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 87, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank evaluates the strength of our individual industry groups by calculating the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
Follow all these and many more stock-moving metrics on Zacks.com.
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UiPath, Inc. (PATH): Free Stock Analysis Report
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