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

UiPath (PATH) closed at $15.42 in the latest trading session, marking a -0.32% move from the prior day. This move lagged the S&P 500's daily gain of 0.03%. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, added 0.12%.

Heading into today, shares of the enterprise automation software developer had lost 11.95% over the past month, lagging the Business Services sector's gain of 1.49% and the S&P 500's gain of 1.66% in that time.

Investors will be hoping for strength from UiPath as it approaches its next earnings release, which is expected to be September 6, 2023. In that report, analysts expect UiPath to post earnings of $0.03 per share. This would mark year-over-year growth of 250%. Meanwhile, our latest consensus estimate is calling for revenue of $282.13 million, up 16.47% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.33 per share and revenue of $1.27 billion. These totals would mark changes of +135.71% and +19.74%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for UiPath. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 16.53% higher. UiPath is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note UiPath's current valuation metrics, including its Forward P/E ratio of 47.12. Its industry sports an average Forward P/E of 22.61, so we one might conclude that UiPath is trading at a premium comparatively.

It is also worth noting that PATH currently has a PEG ratio of 1.09. 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. Technology Services stocks are, on average, holding a PEG ratio of 1.54 based on yesterday's closing prices.

The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 41% 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.

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