UiPath (PATH) and GitLab (GTLB) are two undervalued tech stocks ripe for investment, even as market valuations soar. UiPath, a leader in robotic process automation (RPA), boasts a price-to-sales (P/S) ratio under 4.5 and over 80% gross margins, positioning it as a potential turnaround stock. With recent partnerships with major firms like Alphabet and OpenAI, and an ability to integrate AI agents into its platform, UiPath could significantly enhance operational efficiency for businesses. Additionally, its annual recurring revenue rose 11%, indicating promising growth.
Similarly, GitLab, trading at a P/S ratio below 7 with nearly 90% gross margins, is evolving from a DevSecOps platform into a full software lifecycle solution. Its Duo Agent utilizes AI to improve developer productivity. A shift to a hybrid pricing model is expected to drive growth, regardless of industry changes due to AI. Both stocks are solid long-term investments for those seeking value in the tech sector.
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