UiPath (PATH) Gains But Lags Market: What You Should Know

UiPath (PATH) closed the most recent trading day at $24.89, moving +1.34% from the previous trading session. This change lagged the S&P 500's 2.14% gain on the day. Elsewhere, the Dow gained 1.82%, while the tech-heavy Nasdaq lost 0.01%.

Heading into today, shares of the enterprise automation software developer had lost 34.05% over the past month, lagging the Business Services sector's loss of 10.46% and the S&P 500's loss of 5.01% in that time.

Investors will be hoping for strength from UiPath as it approaches its next earnings release, which is expected to be March 30, 2022.

Any recent changes to analyst estimates for UiPath should also be noted by investors. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained stagnant within the past month. UiPath currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that UiPath has a Forward P/E ratio of 1052.57 right now. For comparison, its industry has an average Forward P/E of 21.79, which means UiPath is trading at a premium to the group.

Investors should also note that PATH has a PEG ratio of 30.07 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Technology Services was holding an average PEG ratio of 2.2 at yesterday's closing price.

The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 178, which puts it in the bottom 30% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.