HubSpot (HUBS) Ascends While Market Falls: Some Facts to Note
In the latest trading session, HubSpot (HUBS) closed at $570.33, marking a +0.08% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.07%.
The cloud-based marketing and sales software platform's stock has climbed by 6.76% in the past month, exceeding the Computer and Technology sector's gain of 2.5% and the S&P 500's gain of 3.98%.
The investment community will be paying close attention to the earnings performance of HubSpot in its upcoming release. The company is predicted to post an EPS of $1.53, indicating a 37.84% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $557.48 million, showing a 18.7% escalation compared to the year-ago quarter.
Any recent changes to analyst estimates for HubSpot should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 11.47% lower within the past month. At present, HubSpot boasts a Zacks Rank of #3 (Hold).
In terms of valuation, HubSpot is currently trading at a Forward P/E ratio of 88.16. This represents a premium compared to its industry's average Forward P/E of 35.52.
One should further note that HUBS currently holds a PEG ratio of 2.88. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.67.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 30, placing it within the top 12% of over 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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HubSpot, Inc. (HUBS) : Free Stock Analysis Report
