HubSpot Hits 52-Week High on Robust Sales & Customer Growth

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Shares of HubSpot Inc.HUBS rallied to a new 52-week high of $111.85, eventually closing at $110.10 on Feb 21.

Notably, the stock has returned 78.0% in the past year, substantially better than the industry 's rally of 28.7%. The company is benefiting from a robust product portfolio and expanding customer base.

HubSpot has a market capital of $3.27 billion.

Impressive Q4 Earnings, 18' View Positive

HubSpot reported impressive fourth-quarter 2017 results. The company reported non-GAAP earnings of 12 cents per share against a loss of 13 cents in the year-ago quarter. The figure also beat the Zacks Consensus Estimate of 7 cents per share.

Revenues surged 39% year over year to $106.5 million. The figure surpassed the Zacks Consensus Estimate of $101 million as well as the guided range of $101-$102 million. Year-over-year growth can primarily be attributed to HubSpot's growing customer base, which increased 48%.

Management provided strong guidance with revenues in the range of $481-$485 million and non-GAAP earnings between 51 cents and 59 cents per share.

Notably, the Zacks Consensus Estimate for fiscal 2018 earnings has surged 37.5% to 55 cents over the last 30 days. The figure reflects year-over-year growth of 120%.

The Zacks Consensus Estimate for fiscal 2018 revenues is currently pegged at $483.5 million, reflecting year-over-year growth of 28.7%.

Improving Adoption: Key Catalyst

Integration of HubSpot's services with social media giants like Facebook and Shopify is driving adoption. Additionally, rapid adoption of Hubspot One and Hubspot CRM tools is a positive for the company. Moreover, expanding international footprint is a positive.

Further, the acquisitions of Motion AI and Kemvi reflect the company's focus on integrating artificial intelligence (AI) and expanding solutions portfolio.

The launch of Customer Hub will further boost top-line growth in 2018.

Zacks Rank and Key Picks

However, HubSpot carries a Zacks Rank #4 (Sell), which reflects limited upside in the near term.

NVIDIA Corporation NVDA , CSRA CSRA and Paycom Software PAYC are worth considering since they sport a Zacks Rank #1 (Strong Buy) and trading at 52-week high. You can see the complete list of today's Zacks #1 Rank stocks here .

Long-term earnings growth rate for NVIDIA, CSRA and Paycom are currently pegged at 10.25%, 9.50% and 25.75%, respectively.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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