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UiPath (PATH) Outpaces Stock Market Gains: What You Should Know

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UiPath (PATH - Free Report) ended the recent trading session at $12.70, demonstrating a +1.11% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.61%. On the other hand, the Dow registered a gain of 0.97%, and the technology-centric Nasdaq increased by 0.33%.

Heading into today, shares of the enterprise automation software developer had gained 4.49% over the past month, outpacing the Business Services sector's gain of 3.43% and lagging the S&P 500's gain of 5.36% in that time.

Market participants will be closely following the financial results of UiPath in its upcoming release. The company's earnings per share (EPS) are projected to be $0.07, reflecting a 41.67% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $347.65 million, up 6.67% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.41 per share and a revenue of $1.42 billion, representing changes of -24.07% and +8.74%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for UiPath. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.79% lower within the past month. Currently, UiPath is carrying a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that UiPath has a Forward P/E ratio of 30.89 right now. This expresses a premium compared to the average Forward P/E of 25.07 of its industry.

It is also worth noting that PATH currently has a PEG ratio of 1.38. 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 1.6 at yesterday's closing price.

The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 77, this industry ranks in the top 31% of all industries, numbering over 250.

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.

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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