Industry Overview - The momentum of the artificial intelligence (AI) infrastructure segment is expected to continue into 2026, supported by a bullish demand scenario [1] - Concerns exist regarding the overstretched valuations of major AI companies, including both infrastructure developers and application implementers [1] Investment Opportunities - Several small and mid-sized AI stocks that underperformed the broader market in the past year are identified as potential game changers for 2026, including UiPath Inc. (PATH), Five9 Inc. (FIVN), Qualys Inc. (QLYS), Teradata Corp. (TDC), and BlackBerry Ltd. (BB) [2] - Each of these stocks currently holds a Zacks Rank of 1 (Strong Buy) or 2 (Buy) [2] Company Highlights UiPath Inc. (PATH) - UiPath provides a robotic process automation platform that utilizes AI to automate repetitive tasks and streamline operations [5] - The platform features embedded AI, machine learning (ML), and natural language processing (NLP) capabilities, enhancing decision-making and information processing [6] - Expected revenue and earnings growth rates for the next year are 9.3% and 13.7%, respectively, with a 5.6% improvement in the earnings consensus estimate over the last 30 days [8] Five9 Inc. (FIVN) - Five9 offers intelligent cloud software for contact centers, benefiting from a rise in subscription revenues and Enterprise AI revenues [10] - The platform includes interactive virtual agents and AI insights, optimizing customer interactions across various channels [12] - Expected revenue and earnings growth rates for the current year are 9.5% and 8.3%, respectively, with a 1.3% improvement in the earnings consensus estimate over the last 60 days [15] Qualys Inc. (QLYS) - Qualys is experiencing increased demand for cloud-based cybersecurity solutions amid rising cyber threats [16] - The company has made strategic acquisitions to enhance its growth, including Blue Hexagon, which improved its threat detection capabilities [17] - Expected revenue and earnings growth rates for the current year are 7.7% and 6.5%, respectively, with a 10.4% improvement in the earnings consensus estimate over the last 60 days [19] Teradata Corp. (TDC) - Teradata's prospects are bolstered by improvements in annual recurring revenue (ARR) growth and cost-saving measures [20] - The company offers a portfolio that includes advanced analytics and AI capabilities, which are expected to drive top-line growth [21] - Expected revenue and earnings growth rates for the current year are -0.6% and 3.6%, respectively, with an 8.3% improvement in the earnings consensus estimate over the last 60 days [23] BlackBerry Ltd. (BB) - BlackBerry provides intelligent security software and services, leveraging AI for cybersecurity and data privacy [24] - The QNX business is gaining traction in the automotive sector, with its software suite installed in over 275 million vehicles [27] - Expected revenue and earnings growth rates for the next year are 7.4% and 13.3%, respectively, with a 6.3% improvement in the earnings consensus estimate over the last 30 days [28]

Company Overview - Figma and UiPath both leverage artificial intelligence to enhance workflows and automate repetitive tasks, with Figma focusing on UI/UX design tools and UiPath specializing in robotic process automation [1] - Figma went public at $33 and currently trades at approximately $37, while UiPath went public at $56 and now trades around $16 [2] Figma's Growth and Financials - Figma's cloud-based tools are lightweight and scalable, allowing for collaborative work among multiple users [4] - The company offers a free tier for individuals and small teams, and a paid tier for larger organizations, with 95% of Fortune 500 companies using its services [5] - In 2024, Figma's revenue increased by 48% to $749 million, with a net loss of $732 million, compared to a net profit of $738 million in 2023 [7] - The number of customers generating over $10,000 in annual recurring revenue grew by 45% to 10,517, and the net dollar retention rate for this cohort increased by 12 percentage points to 134% [7] - Analysts project Figma's revenue to grow at a CAGR of 27% from 2024 to 2027, reaching $1.53 billion, while narrowing its net loss to $331 million [9] UiPath's Growth and Financials - UiPath serves over 60% of Fortune 500 companies and is the leading company in robotic process automation [10] - From fiscal 2021 to fiscal 2025, UiPath's revenue grew at a CAGR of 24%, reaching $1.4 billion, but growth slowed to just 9% in recent fiscal years [11] - Analysts expect UiPath's revenue to grow at a steady CAGR of 10% from fiscal 2025 to fiscal 2028, reaching $1.88 billion, with profitability anticipated in fiscal 2026 [14] - UiPath is focusing on cost-cutting and streamlining operations to stabilize margins and profits, while the RPA market is expected to grow at a CAGR of 43.9% from 2025 to 2030 [15] Investment Considerations - UiPath is viewed as a more compelling investment due to its rising profits and lower valuation compared to Figma, which faces challenges in balancing growth and spending [17] - Figma's enterprise value is nearly $17 billion, trading at 13 times this year's sales, while UiPath's enterprise value is $7.34 billion, trading at four times its fiscal 2026 sales [9][16]

Group 1: Ulta Beauty - Ulta Beauty is a leading beauty retailer in the United States, offering a wide range of products including cosmetics, fragrance, skincare, hair care, bath and body products, and salon styling tools [1] - The company has a Zacks Rank of 1 (Strong Buy) and has seen a 4.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Ulta Beauty's shares gained 11% over the last three months, outperforming the S&P 500's gain of 3.1%, and possesses a Momentum Score of A [2] Group 2: UiPath - UiPath provides an end-to-end platform for automation, combining Robotic Process Automation solutions for digital business operations [2] - The company also holds a Zacks Rank of 1 and has experienced a 3.1% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - UiPath's shares increased by 24.5% over the last three months, significantly outperforming the S&P 500's gain of 3.1%, and has a Momentum Score of A [3] Group 3: Slide Insurance Holdings, Inc. - Slide Insurance engages in underwriting single-family and condominium policies in the property and casualty industry primarily in the United States [3] - The company has a Zacks Rank of 1 and has seen a substantial 21% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - Slide Insurance's shares rose by 23.9% over the last three months, again outperforming the S&P 500's gain of 3.1%, and possesses a Momentum Score of B [4]

Core Insights - UiPath, a leader in automation software, reported a significant insider sale by CEO Daniel Dines, who sold 90,000 shares for approximately $1.5 million [1][9]. Transaction Summary - The direct sale involved 90,000 shares at a total value of ~$1.5 million, with a post-transaction direct ownership of 28,703,585 shares and indirect ownership of 9,615,297 shares [2][6]. - The transaction was executed at a weighted average price of $16.49 per share, reflecting a 27.77% increase in share price over the past year [2][4]. Company Overview - UiPath reported a total revenue of $1.55 billion and a net income of $229.66 million for the trailing twelve months (TTM) [4]. - The company's stock price as of December 23, 2025, was $16.49, with a 1-year price change of 27.77% [4]. Company Snapshot - UiPath specializes in robotic process automation (RPA), artificial intelligence-driven process mining, and low-code development, serving various sectors including banking, healthcare, and government [7][8]. - The company has experienced robust revenue growth, with a fiscal third-quarter sales figure of $411 million, representing a 16% year-over-year increase [11]. Market Context - The timing of Dines's sale was favorable, as UiPath shares had risen about 30% recently, reaching a 52-week high of $19.84 on December 8 [10]. - The current P/E ratio of around 40 indicates that the stock may be considered expensive, suggesting a potential wait-and-see approach for new investors [12].

Core Insights - Both Microvast Holdings, Inc. (MVST) and UiPath (PATH) are speculative growth tech stocks focusing on automation trends, with MVST specializing in battery manufacturing for electrification and PATH providing an AI-driven robotic process automation platform for enterprises [1] UiPath Analysis - In Q3 of fiscal 2026, UiPath achieved a 16% year-over-year revenue growth, driven by the increasing adoption of AI and automation strategies by enterprises [2] - The company reported an 11% year-over-year growth in annual recurring revenue, indicating a scaling of agentic automation across enterprises [2] - UiPath's dollar-based net retention rate stands at 107%, with an 8.2% year-over-year increase in free cash flow, positioning the company for sustained growth [3] - As of October 31, 2025, UiPath holds $1.4 billion in cash and equivalents with no current debt, resulting in a current ratio of 2.7, significantly higher than the industry average of 0.9 [3] - The integration with Microsoft Azure AI Foundry allows customers to automate end-to-end processes, enhancing UiPath's product offering [4] - A partnership with OpenAI to develop a ChatGPT connector aims to improve time to value and ROI from agentic AI efforts [5] - The Zacks Consensus Estimate for UiPath's fiscal 2026 sales is $1.6 billion, reflecting an 11.5% year-over-year increase, with EPS expected to rise by 26.4% to 67 cents [13] Microvast Analysis - In Q3 of 2025, Microvast reported a 21.6% year-over-year revenue growth, driven by strong demand in Asia and Europe [6] - The company benefits from the rising adoption of electric vehicles (EVs), which increases the demand for its battery technology [7] - Microvast's adjusted EBITDA for the nine months ending September 30, 2025, was $76.3 million, a significant recovery from a negative $53.5 million [8] - Despite revenue growth, Microvast reported a net loss of $1.5 million due to changes in warrant/loan valuation and a 23.7% increase in operating expenses [9] - As of September 30, 2025, Microvast had $143 million in cash and equivalents against a current debt of $335 million, resulting in a current ratio of 0.8, indicating liquidity challenges [10] - The Zacks Consensus Estimate for Microvast's 2025 sales is $462.3 million, suggesting a 21.7% year-over-year growth, with EPS expected to improve from a loss of 27 cents to a profit of 17 cents [14] Valuation Comparison - Microvast is trading at a 12-month forward P/E ratio of 13.9, below its 3-month median of 20.5, while UiPath's P/E ratio is 22.5, lower than its median of 68.1 [15] Conclusion - UiPath is positioned as a leader in the AI-driven automation sector, demonstrating strong financial health and growth potential [17] - Microvast faces liquidity pressures and competitive challenges in the EV battery market, impacting its growth and profitability balance [19]

Core Viewpoint - UiPath will be included in the S&P MidCap 400 Index, replacing Synovus Financial, which is being acquired, indicating a significant milestone for the company and potential increased investment interest [1][2]. Group 1: Company Overview - UiPath is a New York-based enterprise software company specializing in robotic process automation and has recently expanded into AI agentic automation [3]. - The company has a market capitalization of approximately $9 billion and is now part of the MidCap 400 Index [3]. Group 2: Stock Performance and Valuation - UiPath's stock has experienced volatility, ranging from $9.38 to $19.84 over the past 52 weeks, currently positioned at a valuation that is neither highly valued nor undervalued, with a Relative Strength in the mid-50s [4]. - The stock's valuation raises some concerns among investors, trading at about 5.65 times sales and over 122.57 times forward earnings, indicating high growth expectations, while the company does not pay a dividend [5]. Group 3: Financial Performance - In its latest earnings report, UiPath achieved revenue of $411 million for the third consecutive quarter in fiscal 2026, marking a 16% increase year-over-year, with annual recurring revenue climbing to $1.782 billion, an 11% growth [6]. - The company reported its first GAAP profitable third quarter, with GAAP operating income of $13 million and adjusted free cash flow of $28 million [6].

Core Insights - UiPath is experiencing an upward trajectory as Morgan Stanley analysts have raised their price target for the company [1][6] - The stock has shown a significant recovery, gaining over 20% in the past month due to positive earnings and strategic partnerships [5] Company Performance - UiPath's current stock price is $16.82, with a market capitalization of $9.0 billion [2] - The stock has a gross margin of 83.16% and has seen trading volumes significantly above its three-month average [2] - The company has fallen nearly 75% since its IPO in 2021, but recent profitability milestones have sparked investor interest [3] Analyst Ratings - Morgan Stanley has increased its price target for UiPath from $15 to $19, indicating a potential upside of 12.8% based on the current price [6] - The firm maintains an Equal Weight rating on the stock, suggesting a balanced outlook [6] Market Context - The broader market saw the S&P 500 and Nasdaq Composite decline slightly, indicating that stock-specific news is currently more influential than overall sector trends [4] - UiPath is set to join the S&P MidCap 400 index on January 2, 2026, which may enhance its visibility and attract more investors [6] Strategic Partnerships - Recent partnerships with companies like OpenAI, Snowflake, and Nvidia are expected to bolster UiPath's growth in AI-driven automation [5]

Core Insights - UiPath Inc. has been identified as a promising AI stock under $20, with Morgan Stanley raising its price target to $19 from $15 following a strong earnings report [1][3] Financial Performance - In FQ3 2026, UiPath reported its first-ever GAAP profitable third quarter, achieving a GAAP operating income of $13 million [2] - Total revenue for the quarter grew 16% year-over-year to $411 million, surpassing previous guidance [2] - Annual Recurring Revenue (ARR) reached $1.78 billion, an 11% increase from the prior year, with $59 million in net new ARR during the quarter [2] - Customer retention metrics remained strong, with a dollar-based gross retention rate of 98% and a net retention rate of 107% [2] Future Projections - For FQ4 2026, UiPath expects revenue to be between $462 million and $467 million, accounting for an estimated $3 million headwind from currency fluctuations [4] - ARR is projected to reach between $1.844 billion and $1.849 billion by January 31, 2026 [4] Strategic Developments - UiPath is transitioning from traditional Robotic Process Automation (RPA) to an Agentic AI platform, integrating new technologies with major companies like OpenAI, Microsoft, NVIDIA, Google, and Snowflake [3] - A significant development includes the integration with Microsoft Azure AI Foundry and a collaboration with OpenAI to create a ChatGPT connector for enterprise workflows [3] - UiPath has been recognized by Gartner as a leader in both Intelligent Document Processing and AI-augmented software testing, supporting its strategic direction [3]

Group 1: UiPath - UiPath is trading at a forward price-to-sales (P/S) multiple of 5 times 2026 analyst estimates, indicating significant upside potential if it transitions into an AI agent operating system [4] - The company has a strong foundation in robotic process automation (RPA), which positions it well to lead in AI agent orchestration as this market expands [4] - UiPath's platform includes tools for securely managing and auditing AI agents, which is crucial for ensuring proper oversight and functionality [6] - The Maestro platform can manage both software bots and AI agents, optimizing task assignments and offering cost-saving advantages [7] - If UiPath becomes the leading AI orchestration tool, it has the potential for tenfold growth given the market size and its current valuation [8] Group 2: SentinelOne - SentinelOne is trading at a forward P/S multiple of 4 times, presenting an opportunity for significant growth in the next decade [9] - The company aims to capture market share in cybersecurity against larger competitors like CrowdStrike, leveraging its technology that allows threat blocking even when machines are offline [10] - SentinelOne's recent acquisition of Prompt Security enhances its ability to provide real-time AI visibility and protect against data leakage, differentiating it in the cybersecurity space [12] - The Singularity Data Lake product positions SentinelOne to compete with Splunk, enabling customers to make secure data queries using natural language, which is faster and more cost-effective [13]

Core Insights - UiPath Inc. (NYSE: PATH) experienced a significant share price increase of 7.52% to close at $17.16, driven by its inclusion in the S&P MidCap 400 index [1][3] - The inclusion in the index is expected to enhance the company's visibility to institutional and foreign investors, as funds tracking the index will adjust their portfolios accordingly [2] Financial Performance - In Q3 of fiscal year 2026, UiPath reported a net income of $198.8 million, a turnaround from a net loss of $10.6 million in the same quarter the previous year [3] - Revenue for the quarter rose by 15.9% to $411 million, compared to $354.6 million year-on-year, with annual recurring revenues (ARR) reaching $1.782 billion [3] Future Projections - The company is projecting revenues between $462 million and $467 million for the upcoming period, with ARR expected to be between $1.844 billion and $1.849 billion [4]