Key Takeaways PATH leads the RPA space with strong enterprise ties, recurring revenues and 12% ARR growth.APP's Axon 2 quadrupled ad spend and revived growth despite stagnation in mobile gaming.PATH trades at 4.09X forward sales vs. APPs 19.88X, making it the more attractive valuation play.UiPath (PATH) and AppLovin Corporation (APP) are two prominent players leveraging artificial intelligence to transform digital operations. UiPath leads the robotic process automation sector (RPA), applying AI to streamlin ...

Key Takeaways UiPath's 4.18X forward P/S ratio undercuts the industry average of 5.85X, signaling potential undervaluation. PATH's RPA platform powers digital shifts in finance, healthcare and logistics with strong recurring revenue. Partnerships with Microsoft and SAP reinforce PATH's enterprise edge and automation-first growth strategy.UiPath Inc. (PATH) is trading at a discount that growth investors shouldn't ignore. With a forward 12-month price-to-sales (P/S) ratio of just 4.18X — well below the indu ...

Welcome to another edition of Zach's Rank Buy. I'm Brian Bolan. I'm the aggressive growth stock strategist here at Zachs.And I got two more stocks for your aggressive growth radar screen. Let's get right to it, shall we. The first one uh is Convault Systems.Convaltult Systems. And it's CV LT. It's a Zach's rank number one. That's a strong buy.And it's got a A for growth and an F for value. And if you've been following my videos, you know that I like a strong growth score and a weak value score. That tells m ...

Core Insights - UiPath (PATH) is trading at a forward 12-month price-to-sales (P/S) ratio of 4.12X, which is below the industry average of 5.75X, indicating a potential investment opportunity for those interested in enterprise automation [1][8] - The company has shown consistent revenue growth driven by strong demand in sectors such as finance, healthcare, and logistics, supported by its enterprise-first approach and recurring revenue model [2][8] - UiPath's lower P/S ratio may reflect market caution regarding its path to profitability, but it may also underappreciate the company's strategic positioning and innovation potential for long-term investors [3] Valuation and Competitive Position - UiPath stands out in valuation compared to peers like ServiceNow (NOW), which trades at a forward P/S of 13.85X, and Pegasystems (PEGA), which trades at 4.93X, highlighting UiPath's relative affordability [5][6] - The company's focus on automation-first solutions differentiates it from broader enterprise platforms like ServiceNow and Pegasystems, which incorporate automation as part of a wider offering [6] Growth Momentum - UiPath's shares have increased by 19% over the past three months, although this is below the broader industry's growth of 35% [9] - The Zacks Consensus Estimate for UiPath's earnings has been trending higher over the past 60 days, indicating potential strength ahead [11] - UiPath currently holds a Zacks Rank 1 (Strong Buy), reflecting its strong earnings estimate revisions and valuation [14] Conclusion - UiPath presents a compelling case for investment due to its discounted valuation, robust product offerings, expanding international presence, and strong positioning in the automation market [15][16]

Core Insights - UiPath Inc. (PATH) shares have increased by 36% over the past three months, closely following the industry's 40% growth, indicating a potential recovery after a challenging year [1][8] Group 1: Company Performance - UiPath is a significant player in the rapidly growing Robotic Process Automation (RPA) market, which is expected to expand substantially in the coming years [4] - The company reported a 6% year-over-year revenue increase in the first quarter of fiscal 2026, reaching $357 million, while its annual recurring revenue rose by 12% to $1.69 billion [6] - UiPath maintains high customer retention rates, with net retention rates between 110% and 115%, demonstrating its ability to grow usage within existing accounts [6] Group 2: Strategic Partnerships - Strategic alliances with major technology companies such as Microsoft, Amazon, and Salesforce enhance UiPath's credibility and expand its market reach [5][7] - These partnerships integrate UiPath's solutions into broader enterprise ecosystems, leveraging platforms like Microsoft Azure, Amazon's AWS, and Salesforce Cloud [5] Group 3: Financial Position - UiPath has a strong financial position, with $1.6 billion in cash and equivalents and no outstanding debt, allowing for growth initiatives and strategic investments [9] - The company reported a current ratio of 2.95, surpassing the industry average of 2.34, indicating strong liquidity to cover short-term liabilities [10] Group 4: Valuation - UiPath is currently trading at a forward price-to-sales ratio of 4.43X, which is below the industry average of 5.82X, suggesting an attractive relative valuation for potential investors [8][12] - The lower price-to-sales multiple may reflect market skepticism but also presents an opportunity for multiple expansion as the company meets growth expectations [12] Group 5: Analyst Sentiment - Over the past 60 days, there has been a positive shift in analyst sentiment, with seven analysts raising fiscal 2026 estimates and six upgrading projections for fiscal 2027 [14][15] - This trend indicates growing confidence in the company's mid-term growth and profitability outlook, which could attract further investor interest [15] Group 6: Investment Recommendation - Based on strong financials, rising revenues, positive analyst sentiment, solid partnerships, and attractive valuation, UiPath is considered a compelling long-term investment opportunity [16] - The company's leadership in automation and a debt-free balance sheet provide a strong foundation for sustained growth, making it a strong buy for investors seeking exposure in the AI and automation sector [16]

Industry Overview - The AI infrastructure space is experiencing significant growth, with fears related to DeepSeek being overblown. Confidence among market participants has increased due to potential trade deals, expected rate cuts by the Fed, and reduced recession worries in the U.S. economy [1] - The AI sector is supported by a bullish demand scenario, with major companies planning to invest $325 billion in AI infrastructure by 2025, representing a 46% year-over-year increase in capital spending [4] Investment Recommendations - Five mid-cap AI infrastructure stocks are recommended for investment, having outperformed the S&P 500 in the past three months and offering deep discounted value for long-term growth. The stocks include UiPath Inc. (PATH), Five9 Inc. (FIVN), C3.ai Inc. (AI), Qualys Inc. (QLYS), and Fastly Inc. (FSLY) [2][3] Company Insights UiPath Inc. (PATH) - UiPath provides an end-to-end automation platform with a focus on robotic process automation solutions. The company has introduced new generative AI features to enhance its automation capabilities [8][10] - Expected revenue and earnings growth rates for UiPath are 8.5% and 5.7%, respectively, for the current year, with a P/E ratio of 23.9X compared to the industry average of 29.7X [11] Five9 Inc. (FIVN) - Five9 offers intelligent cloud software for contact centers, benefiting from the growing adoption of AI tools. The company recently launched its Intelligent CX Platform powered by Five9 Genius AI [12][14] - Expected revenue and earnings growth rates for Five9 are 9.6% and 11.7%, respectively, for the current year, with a P/E ratio of 10.1X compared to the industry average of 29.7X [15] C3.ai Inc. (AI) - C3.ai specializes in enterprise AI applications and aims to deepen its alignment with major cloud providers and government institutions. The company focuses on deploying actionable AI solutions [16][17] - Expected revenue and earnings growth rates for C3.ai are 20.1% and 9.8%, respectively, for the current year, but it has yet to generate profit, with an industry P/E of 20.2X [18] Qualys Inc. (QLYS) - Qualys is experiencing increased demand for cloud-based cybersecurity solutions, supported by strategic acquisitions that enhance its threat detection capabilities [19][21] - Expected revenue and earnings growth rates for Qualys are 7.3% and 0.7%, respectively, for the current year, with a P/E ratio of 8.8X compared to the industry average of 11.6X [22] Fastly Inc. (FSLY) - Fastly provides infrastructure software for cloud computing and has introduced the Fastly AI Accelerator to optimize generative AI applications [23][24] - Expected revenue and earnings growth rates for Fastly are 8.6% and 25%, respectively, for 2025, but it has yet to generate profit, with an industry P/E of 29.7X [25]

Market Overview - The U.S. stock market experienced a rally in 2023 and 2024, continuing into the first half of 2025, primarily driven by the technology sector and the adoption of generative AI technology [2][4] - The AI-driven rally faced setbacks in early 2025 due to the introduction of the low-cost Chinese DeepSeek AI platform, U.S. export restrictions on high-end AI processors to China, and geopolitical tensions [3][4] AI Infrastructure Investment - The AI infrastructure sector is gaining momentum, with fears related to DeepSeek being overblown [4] - Four major companies are projected to invest $325 billion in AI infrastructure in 2025, marking a 46% year-over-year increase in capital expenditure [7][9] - The total addressable global sovereign AI market is estimated to reach $1.5 trillion [8] Recommended AI Stocks - Five AI stocks are recommended for investment in the second half of the year, all showing strong performance and a Zacks Rank 1 (Strong Buy): Jabil Inc. (JBL), Twilio Inc. (TWLO), UiPath Inc. (PATH), Intuit Inc. (INTU), and Dell Technologies Inc. (DELL) [5][9] Company Insights Jabil Inc. (JBL) - Jabil is benefiting from growth in capital equipment and AI-powered data center infrastructure, with a focus on product diversification [10] - The company has an expected revenue growth rate of 5.9% and earnings growth rate of 18.5% for the next year [12] Twilio Inc. (TWLO) - Twilio is enhancing its cloud communications platform with generative AI, launching Customer AI technology to improve customer engagement [13][15] - The expected revenue growth rate for Twilio is 7.9% and earnings growth rate is 22.3% for the current year [18] UiPath Inc. (PATH) - UiPath offers a comprehensive automation platform with embedded AI capabilities, introducing new generative AI features to enhance automation [19][20] - The expected revenue growth rate for UiPath is 8.5% and earnings growth rate is 5.7% for the current year [21] Intuit Inc. (INTU) - Intuit is experiencing steady revenue growth from its Online Ecosystem and is integrating generative AI into its products to enhance customer insights [22][23] - The expected revenue growth rate for Intuit is 11.7% and earnings growth rate is 13.7% for the next year [25] Dell Technologies Inc. (DELL) - Dell is seeing strong demand for AI servers, securing $12.1 billion in AI server orders, and expanding its cloud services [26][28] - The expected revenue growth rate for Dell is 8.7% and earnings growth rate is 16% for the current year [29]

Core Insights - FWF, part of AROBS Group, has been recognized as an Agentic Automation Fast Track Partner by UiPath, highlighting its commitment to innovation in enterprise automation and the use of Agentic AI [2][3] - This recognition signifies AROBS Group's strategic focus on investing in transformative technologies that enhance organizational operations [2][3] Company Overview - AROBS is the largest publicly listed technology company in Romania, operating in 10 countries and providing software services in various sectors including automotive, aerospace, and fintech [7] - FWF by AROBS specializes in intelligent automation solutions, with a strong project portfolio in banking, telecom, and public administration across the UK, Germany, and Eastern Europe [8] Partnership and Program Details - The Agentic Automation Fast Track program, initiated by UiPath in early 2025, includes a select group of global partners contributing to the development of UiPath's latest solutions [4] - FWF by AROBS aims to deliver automation solutions that facilitate rapid digital transformation and enhance operational efficiency [5] Technological Advancements - The UiPath Agentic Automation Platform goes beyond traditional RPA by introducing AI agents capable of understanding context, analyzing unstructured data, and making autonomous decisions [6] - FWF by AROBS is positioned alongside major global players like Accenture and IBM, offering tailored solutions to meet specific regional market needs [6]

Core Insights - UiPath has demonstrated resilience against potential disruptions from generative AI, indicating stability in its business operations despite not being a leading player in the generative AI space [1] - The company is not facing an existential crisis, which dispels concerns about its long-term viability [1] Company Analysis - UiPath is not classified as a generative AI winner, but its business remains stable [1] - The company is perceived to have a strong balance sheet and management team, which are critical for long-term growth [1] Investment Perspective - The investment approach focuses on identifying undervalued companies with secular growth potential, emphasizing the importance of strong financial health and management [1]

Financial Data and Key Metrics Changes - The meeting confirmed that a quorum was present with 361,745,350 shares represented, indicating strong shareholder engagement [9] - The compensation for named executive officers was approved on a nonbinding advisory basis, reflecting shareholder support for management [15] Business Line Data and Key Metrics Changes - No specific business line data or key metrics were discussed during the meeting [13] Market Data and Key Metrics Changes - No specific market data or key metrics were provided during the meeting [13] Company Strategy and Development Direction and Industry Competition - The meeting focused on the election of directors and the approval of executive compensation, indicating a stable governance structure [12] - The appointment of KPMG LLP as the independent registered public accounting firm suggests a commitment to maintaining high standards of financial reporting [15] Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during this meeting [13] Other Important Information - The meeting was held virtually, and all proceedings were recorded for future reference, demonstrating transparency [7] - The results of the voting will be publicly announced following verification, ensuring accountability [15] Q&A Session All Questions and Answers - No questions or comments were raised during the Q&A session, indicating either satisfaction with the proposals or a lack of concerns among shareholders [13]