HubSpot (HUBS) Ascends While Market Falls: Some Facts to Note

HubSpot (HUBS) closed at $625 in the latest trading session, marking a +0.62% move from the prior day. This move outpaced the S&P 500's daily loss of 0.19%. On the other hand, the Dow registered a gain of 0.1%, and the technology-centric Nasdaq decreased by 0.54%.

Shares of the cloud-based marketing and sales software platform witnessed a gain of 2.86% over the previous month, beating the performance of the Computer and Technology sector with its gain of 2.36% and underperforming the S&P 500's gain of 3.18%.

Investors will be eagerly watching for the performance of HubSpot in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.47, marking a 22.5% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $597.13 million, up 19.04% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $6.87 per share and a revenue of $2.56 billion, demonstrating changes of +16.64% and +17.79%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for HubSpot. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 14.44% increase. HubSpot is currently a Zacks Rank #3 (Hold).

In the context of valuation, HubSpot is at present trading with a Forward P/E ratio of 90.42. This expresses a premium compared to the average Forward P/E of 30.06 of its industry.

It is also worth noting that HUBS currently has a PEG ratio of 2.96. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software industry currently had an average PEG ratio of 1.83 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 47, which puts it in the top 19% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Remember to apply to follow these and more stock-moving metrics during the upcoming 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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