Knowing facts before you bet on it

Uipath (Path) was recently on the list of Zacks.com of the most sought -after stocks. Therefore, you may want to take some of the key factors into account that could influence the performance of the share in the near future.

Last month, the shares of this developer of the Enterprise Automation software +22.2% returned compared to the changes in the Zack S&P 500 Composite +9.1%. During this time, the Zack's Internet software industry, which Uipath falls, has increased by 18.3%. The key question now is: What could be the future direction of the stock?

Although media reports or rumors about a significant change in the business prospects of a company generally lead to the fact that its shares lead to trend and an immediate change in price, there are always certain basic factors that ultimately advance the purchase and hate decision.

Here at Zacks we prioritize the evaluation of the change in the projection of the future income of a company above all. This is because we believe that the current value of his future profit current determines the current value for its shares.

We essentially take a look at how analysts that cover the shares reveal their profit estimates in order to reflect the effects of the latest business trends. And if the profit estimates for a company rise, the current value for its shares increases. A higher atmosphere to be used than the current market price gives investors the interest for buying the share, which leads at a higher price. For this reason, empirical research shows a strong correlation between trends in the revisions of the yield estimate and short -term share price movements.

Uipath is expected to make a profit of $ 0.10 per share in the current quarter, which corresponds to a change of -23.1%compared to the previous year. In the last 30 days, the Zacks consensus estimate remained unchanged.

The consensus rate estimate of $ 0.52 for the current financial year shows a change of -1.9%compared to the previous year. This estimate has changed by -6.4% in the past 30 days.

For the next financial year, the consensus estimate of $ 0.57 shows a change of +8.3% compared to what Uipath is expected a year ago. The estimate has changed in the past month.

With an impressive external, tested success balance sheet is our proprietary stock assessment tool and the Zacks-rank-rank-a more cozy indicator for the short-term price-performance of a share, since it effectively uses the power of the profit assessment revisions. The size of the recent change in the consensus estimate and three other factors in connection with the profit estimates led to a Zacks rank 3 (Hold) for UiPath.

The following table shows the development of the company's 12-month consensus EPS EPS estimate:

12-month consensus EPS estimate for path _12monthepscharturl

Although the profit growth of a company is probably the best indicator of its financial health, not much happens if it cannot increase its income. It is almost impossible for a company to increase its income without increasing its sales over long periods of time. It is therefore crucial to know the potential sales growth of a company.

For Uipath, consensus sales for the current quarter of $ 332.33 million shows a change of -0.8%compared to the previous year. For the current and next financial years, estimates of USD 1.53 billion and 1.65 billion US dollars +6.7% or +8.2% make changes.

Uipath reported sales of $ 423.65 million in the last quarter, which corresponds to a change of +4.5%compared to the previous year. EPS of $ 0.26 for the same period comparable to USD 0.22 a year ago.

Compared to the Zacks Consensus estimate of $ 424.75 million, the registered income is a surprise of -0.26%. The EPS surprise was +36.84%.

The company defeated consensus -epseps estimates in each of the following four quarters. The company has achieved three times consensus sales estimates three times during this period.

Without taking into account the assessment of a share, no investment decision can be efficient. When predicting the future price performance of a share, it is crucial to determine whether the current price correctly reflects the internal value of the underlying business and the company's growth prospects.

During the comparison of the current values of the evaluation advantages of a company, such as price-to-profit (P/E), Price-to-Sales (P/S) and Price-to-Cash-Flow (P/CF), with its own historical values, to determine whether its shares are rather evaluated, overvalued or undervalued, the relative position is comparable to prices for the relative position.

The Zacks Value Style Score (part of the Zacks Style Scores Systems), which pays attention to the grade of stocks from A to F both traditional and unconventional valuation metrics (AA is better than a C; and so on) is rather helpful to identify whether a share is overrated, legally valued or temporarily accommodated.

Uipath is evaluated on this front to F, which points out that it is with his colleagues with a bonus. Click here to display the values of some evaluation metrics that have driven this grade.

The facts discussed here and a lot of other information about Zacks.com could help determine whether it is worth paying attention to the UIPath market or not. However, the Zacks ranked 3rd indicate that it is in line with the broader market at short notice.

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Uipath, Inc. (path): Report on free stock analysis

This article was originally published in Zack's Investment Research (Zacks.com).

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