HubSpot (HUBS) Gains But Lags Market: What You Should Know
HubSpot (HUBS) closed at $417.07 in the latest trading session, marking a +0.21% move from the prior day. This move lagged the S&P 500's daily gain of 0.33%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 1.92%.
Heading into today, shares of the cloud-based marketing and sales software platform had gained 4.71% over the past month, lagging the Computer and Technology sector's gain of 7.45% and the S&P 500's gain of 5.67% in that time.
Investors will be hoping for strength from HubSpot as it approaches its next earnings release. The company is expected to report EPS of $0.82, up 51.85% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $474.51 million, up 19.95% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.25 per share and revenue of $2.06 billion. These totals would mark changes of +52.88% and +18.8%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for HubSpot. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.73% lower within the past month. HubSpot currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that HubSpot has a Forward P/E ratio of 97.93 right now. Its industry sports an average Forward P/E of 41.37, so we one might conclude that HubSpot is trading at a premium comparatively.
We can also see that HUBS currently has a PEG ratio of 3.67. 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. The Internet - Software industry currently had an average PEG ratio of 1.72 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 60, which puts it in the top 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow HUBS in the coming trading sessions, be sure to utilize Zacks.com.
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HubSpot, Inc. (HUBS) : Free Stock Analysis Report
