UiPath (PATH) Exceeds Market Returns: Some Facts to Consider

In the latest market close, UiPath (PATH) reached $14.58, with a +1.25% movement compared to the previous day. This change outpaced the S&P 500's 0.53% gain on the day. Elsewhere, the Dow gained 0.38%, while the tech-heavy Nasdaq added 0.25%.Prior to today's trading, shares of the enterprise automation software developer had gained 13.3% over the past month. This has outpaced the Business Services sector's gain of 3.28% and the S&P 500's gain of 1.24% in that time.Analysts and investors alike will be keeping a close eye on the performance of UiPath in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.19, showcasing a 13.64% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $424.75 million, up 4.81% from the year-ago period.For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.47 per share and a revenue of $1.43 billion, representing changes of -12.96% and +9.35%, respectively, from the prior year.Investors should also take note of any recent adjustments to analyst estimates for UiPath. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.84% higher. At present, UiPath boasts a Zacks Rank of #1 (Strong Buy).In terms of valuation, UiPath is currently trading at a Forward P/E ratio of 30.89. Its industry sports an average Forward P/E of 23.71, so one might conclude that UiPath is trading at a premium comparatively.It's also important to note that PATH currently trades at a PEG ratio of 1.6. 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 industry had an average PEG ratio of 1.6 as trading concluded yesterday.The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 87, positioning it in the top 35% of all 250+ industries.The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.To follow PATH in the coming trading sessions, be sure to utilize Zacks.com.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks