Here's Why HubSpot (HUBS) Gained But Lagged the Market Today
HubSpot (HUBS) closed the latest trading day at $585.73, indicating a +0.01% change from the previous session's end. This change lagged the S&P 500's 0.53% gain on the day. On the other hand, the Dow registered a gain of 0.64%, and the technology-centric Nasdaq increased by 0.19%.
Heading into today, shares of the cloud-based marketing and sales software platform had gained 0.06% over the past month, lagging the Computer and Technology sector's gain of 5.21% and the S&P 500's gain of 2.48% in that time.
Analysts and investors alike will be keeping a close eye on the performance of HubSpot in its upcoming earnings disclosure. In that report, analysts expect HubSpot to post earnings of $1.53 per share. This would mark year-over-year growth of 37.84%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $557.48 million, up 18.7% from the year-ago period.
Investors should also take note of any recent adjustments to analyst estimates for HubSpot. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 moved 10.93% lower. Right now, HubSpot possesses a Zacks Rank of #3 (Hold).
Digging into valuation, HubSpot currently has a Forward P/E ratio of 90.61. This expresses a premium compared to the average Forward P/E of 34.62 of its industry.
It's also important to note that HUBS currently trades at 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 average PEG ratio for the Internet - Software industry stood at 1.78 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 59, this industry ranks in the top 24% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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HubSpot, Inc. (HUBS) : Free Stock Analysis Report
