In the latest close session, UiPath (PATH) was down 1.43% at $13.06. This change lagged the S&P 500's 1.11% loss on the day. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq lost 1.88%.
The enterprise automation software developer's stock has dropped by 6.89% in the past month, falling short of the Computer and Technology sector's gain of 3.49% and the S&P 500's gain of 2.06%.
The upcoming earnings release of UiPath will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.19, reflecting a 18.75% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $442.67 million, indicating a 7.68% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.79 per share and revenue of $1.79 billion. These totals would mark changes of +9.72% and +11.25%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for UiPath. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 4.22% higher within the past month. At present, UiPath boasts a Zacks Rank of #2 (Buy).
In the context of valuation, UiPath is at present trading with a Forward P/E ratio of 16.7. This expresses a discount compared to the average Forward P/E of 20.8 of its industry.
Also, we should mention that PATH has a PEG ratio of 0.77. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.19.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 79, this industry ranks in the top 33% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
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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UiPath, Inc. (PATH): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).