Enterprise software firm UiPath is the IBD Stock Of The Day as the company leans into artificial intelligence and shows improved profitability. Also, PATH stock is approaching a buy point.
On the stock market today, PATH stock rose 3.7% to 18.08.
PATH stock is in a cup-with-handle base with a buy point of 19.03, according to IBD MarketSmith pattern recognition.
However, aggressive investors likely bought PATH stock on Monday as it broke a trend line in the handle. In another positive move, UiPath shares have climbed above their 50-day moving average line.
Leveraging Artificial Intelligence
New York City-based UiPath makes robotic process automation software. UiPath's software scans documents, imports and mines data, and automates business processes. Its software also leverages innovations in artificial intelligence to improve efficiency.
On June 27, UiPath announced new services to accelerate customers' ability to discover, automate, and operate automations at scale through generative AI and specialized AI.
"UiPath is uniquely able to combine our understanding of screens, documents, tasks, and processes with the intelligence of generalized AI to watch work happen, understand what is being done, and automate it in our platform," Graham Sheldon, chief product officer at UiPath, said in a news release.
He added, "Only when AI is combined with enterprise automation, to provide context and take appropriate action, will companies realize the complete value."
PATH Stock: Earnings Report Ahead
The next catalyst for PATH stock could be the company's fiscal second-quarter earnings report, due in late August.
In the company's fiscal first-quarter earnings release, Rob Enslin, UiPath co-chief executive, said the company is focused on "driving growth at scale and increasing profitability."
Meanwhile, UiPath has posted three straight quarters of earnings growth on a year-over-year basis after two consecutive quarters of losses.
For UiPath's fiscal second quarter, Wall Street is calling for earnings of 3 cents a share on sales of $282.1 million. In the year-earlier period, UiPath lost 2 cents a share on sales of $242.2 million.
UiPath Is On Two IBD Stock Lists
UiPath ranks No. 17 out of 126 stocks in IBD's Computer Software-Enterprise industry group, according to IBD Stock Checkup. PATH stock also has an IBD Composite Rating of 95 out of 99.
IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. Further, the best growth stocks have a Composite Rating of 90 or better.
On Monday, Investor's Business Daily added PATH stock to its SwingTrader list. PATH stock also is on the IBD Tech Leaders list.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
