Why UiPath Stock Is a Smart Buy Right Now

MrDecoder · 2026-03-12T17:22:57+00:00

UiPath stock, down over 80%, is seen as a favorable buy due to its potential growth in agentic AI. It aims to achieve profitability and expand in the public sector while differentiating itself from competitors like Palantir.

MrDecoder

2026-03-12 17:22:57

Abstract generation in progress

After falling by over 80% from its previous peak, UiPath (PATH +6.82%) stock trades at a more favorable valuation that makes it a compelling buy for investors. The agentic AI specialist still trades at a price-to-sales multiple of 5, which isn’t a bargain, but even Palantir Technologies didn’t look cheap when it bottomed in 2022.

Smart investors know that valuation multiples are backward-looking. It’s a business’s future growth that determines where the stock goes next. UiPath is starting to turn a profit just as it is positioning itself as an essential platform provider for agentic artificial intelligence (AI).

Image source: Getty Images.

Companies are expected to significantly expand their use of AI agents in the coming years. This promises a substantial increase in productivity, as agents can complete a series of complex tasks, such as reading documents, downloading apps, and writing software code, all without human intervention.

Palantir could be perceived as a threat to UiPath, as it is also pushing into agentic AI, but these two companies are tackling different problems. Palantir is pursuing high-value contracts to help organizations manage complex supply chains and other operational challenges. UiPath provides automation software for repetitive office tasks. These are different markets, which is why both companies are growing revenue.

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NYSE: PATH

UiPath

Today’s Change

(6.82%) $0.79

Current Price

$12.38

Key Data Points

Market Cap

$6.6B

Day’s Range

$11.65 - $12.41

52wk Range

$9.38 - $19.84

Volume

5.1M

Avg Vol

32M

Gross Margin

83.16%

UiPath is expanding its government business with the U.S. Coast Guard, Veterans Administration, and Social Security Administration. Management sees substantial opportunity ahead in the public sector, indicating competitive differentiation in what it offers.

The company is on track to report its first profitable year, which could benefit the stock. Wall Street expects the company’s revenue to reach nearly $1.9 billion in the next two years, while its earnings should grow faster as margins expand. At the current $14.31 share price, the stock is trading at a forward (one-year) price-to-earnings ratio of 19, making it a compelling value in the agentic AI market.

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