HubSpot (HUBS) Ascends But Remains Behind Market: Some Facts to Note

In the latest market close, HubSpot (HUBS) reached $612.98, with a +0.39% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 1.03%. Elsewhere, the Dow saw an upswing of 0.34%, while the tech-heavy Nasdaq appreciated by 1.51%.

The cloud-based marketing and sales software platform's stock has climbed by 0.12% in the past month, falling short of the Computer and Technology sector's gain of 2.52% and the S&P 500's gain of 3.21%.

Market participants will be closely following the financial results of HubSpot in its upcoming release. In that report, analysts expect HubSpot to post earnings of $1.47 per share. This would mark year-over-year growth of 22.5%. In the meantime, our current consensus estimate forecasts the revenue to be $597.13 million, indicating a 19.04% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.87 per share and a revenue of $2.56 billion, signifying shifts of +16.64% and +17.79%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for HubSpot. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 14.44% higher. HubSpot is holding a Zacks Rank of #3 (Hold) right now.

With respect to valuation, HubSpot is currently being traded at a Forward P/E ratio of 88.88. This denotes a premium relative to the industry's average Forward P/E of 29.54.

It's also important to note that HUBS currently trades at a PEG ratio of 2.91. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.81.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 46, which puts it in the top 19% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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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.

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