HubSpot (HUBS) Gains As Market Dips: What You Should Know

The latest trading session saw HubSpot (HUBS) ending at $606.09, denoting a +0.2% adjustment from its last day's close. This change outpaced the S&P 500's 0.34% loss on the day. Elsewhere, the Dow gained 0.23%, while the tech-heavy Nasdaq lost 0.33%.

The cloud-based marketing and sales software platform's stock has dropped by 0.84% in the past month, exceeding the Computer and Technology sector's loss of 4.23% and the S&P 500's loss of 4.05%.

Market participants will be closely following the financial results of HubSpot in its upcoming release. The company plans to announce its earnings on May 8, 2024. In that report, analysts expect HubSpot to post earnings of $1.49 per share. This would mark year-over-year growth of 24.17%. Meanwhile, the latest consensus estimate predicts the revenue to be $597.12 million, indicating a 19.04% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $6.93 per share and revenue of $2.56 billion, which would represent changes of +17.66% and +17.78%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for HubSpot. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, HubSpot boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, HubSpot is currently exchanging hands at a Forward P/E ratio of 87.27. This signifies a premium in comparison to the average Forward P/E of 29.17 for its industry.

Also, we should mention that HUBS has a PEG ratio of 2.86. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.64.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 73, this industry ranks in the top 29% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow HUBS in the coming trading sessions, be sure to utilize Zacks.com.

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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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