HubSpot (HUBS) Increases Yet Falls Behind Market: What Investors Need to Know
The most recent trading session ended with HubSpot (HUBS) standing at $609.85, reflecting a +0.65% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 0.82%. Meanwhile, the Dow gained 0.41%, and the Nasdaq, a tech-heavy index, added 0.95%.
The cloud-based marketing and sales software platform's stock has climbed by 7.38% in the past month, falling short of the Computer and Technology sector's gain of 10.9% and outpacing the S&P 500's gain of 5.59%.
The investment community will be closely monitoring the performance of HubSpot in its forthcoming earnings report. The company is scheduled to release its earnings on February 14, 2024. The company is predicted to post an EPS of $1.54, indicating a 38.74% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $557.48 million, up 18.7% from the prior-year quarter.
Investors should also take note of any recent adjustments to analyst estimates for HubSpot. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. HubSpot presently features a Zacks Rank of #4 (Sell).
Looking at its valuation, HubSpot is holding a Forward P/E ratio of 93.72. This expresses a premium compared to the average Forward P/E of 31.54 of its industry.
It is also worth noting that HUBS currently has a PEG ratio of 3.06. 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 1.68.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% of all 250+ industries.
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.
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
