UiPath (PATH) Upgraded to Buy: Here's Why

Core Viewpoint - UiPath (PATH) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook based on an upward trend in earnings estimates [1][3]. Earnings Estimates and Stock Price Impact - Changes in a company's future earnings potential, reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements [4]. - Institutional investors utilize earnings estimates to calculate the fair value of a company's shares, leading to buying or selling actions that influence stock prices [4]. UiPath's Earnings Outlook - For the fiscal year ending January 2026, UiPath is expected to earn $0.55 per share, representing a 3.8% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for UiPath has increased by 114.3%, indicating a significant positive revision in earnings expectations [8]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with a strong track record of performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - The upgrade of UiPath to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].