HubSpot (HUBS), based in Cambridge, Mass., provides a cloud-based marketing and sales software platform, notes Leo Fasciocco, breakout stock specialist and editor of Ticker Tape Digest.
With annual revenues of $513 million, the company's software platform features integrated applications to help businesses attract visitors to their websites, convert visitors into leads and close leads into customers.
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The integrated applications include social media, search engine optimization, blogging, website content management, marketing automation, e-mail, sales, customer relationship management and analytics. Its products include HubSpot Marketing, HubSpot CRM and HubSpot Sales.
HUBS topped the consensus quarterly estimate the past four quarters by 12 cents a share, 11 cents, 7 cents and 12 cents. Analysts have been raising their estimates.
This year, analysts are forecasting a 57% jump in net to $1.40 a share from the 89 cents the year before. Looking out to 2020, profits are projected to climb 32% to $1.84 a share from the anticipated $1.40 this year.
The stock coming public back in late 2014 at $36. The shares rallied to $60 by late 2015 and then went into a long-term base.
Technically, the stock broke out in early 2017 and since then has been trending aggressively higher. It is now at all-time high having made a fivefold move since 2016.
The stock has just broken out from its 15-week flat base. That move carried the stock to a new all-time high. We see more upside.
We are targeting the stock for a move to $230. A protective stop can be placed near $192. We caution that with a very high p/e ratio of 142, the stock is only suitable for very aggressive bulls.