UiPath (PATH) Stock Sinks As Market Gains: Here's Why

UiPath (PATH) closed at $14.79 in the latest trading session, marking a -3.77% move from the prior day. This change lagged the S&P 500's daily gain of 0.26%. Elsewhere, the Dow gained 0.6%, while the tech-heavy Nasdaq added 0.25%. Coming into today, shares of the enterprise automation software developer had lost 3.7% in the past month. In that same time, the Computer and Technology sector gained 1.58%, while the S&P 500 gained 1.57%. The investment community will be closely monitoring the performance of UiPath in its forthcoming earnings report. The company is expected to report EPS of $0.25, down 3.85% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $464.86 million, indicating a 9.73% upward movement from the same quarter last year. For the full year, the Zacks Consensus Estimates project earnings of $0.67 per share and a revenue of $1.59 billion, demonstrating changes of +26.42% and +11.52%, respectively, from the preceding year. It is also important to note the recent changes to analyst estimates for UiPath. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection has moved 3.06% higher. At present, UiPath boasts a Zacks Rank of #1 (Strong Buy). Looking at valuation, UiPath is presently trading at a Forward P/E ratio of 23.03. This expresses a discount compared to the average Forward P/E of 23.72 of its industry. We can additionally observe that PATH currently boasts a PEG ratio of 0.97. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. PATH's industry had an average PEG ratio of 1.43 as of yesterday's close. The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 57, which puts it in the top 24% of all 250+ industries. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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. Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report UiPath, Inc. (PATH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks