HubSpot (HUBS) Outperforms Broader Market: What You Need to Know
HubSpot (HUBS) closed the latest trading day at $537.84, indicating a +1.43% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily gain of 0.18%. Elsewhere, the Dow saw an upswing of 0.07%, while the tech-heavy Nasdaq appreciated by 0.1%.
Coming into today, shares of the cloud-based marketing and sales software platform had gained 7.77% in the past month. In that same time, the Computer and Technology sector gained 1.84%, while the S&P 500 gained 2.75%.
The upcoming earnings release of HubSpot will be of great interest to investors. The company's upcoming EPS is projected at $1.53, signifying a 37.84% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $557.48 million, up 18.7% from the year-ago period.
It is also important to note the recent changes to analyst estimates for HubSpot. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 11.47% fall in the Zacks Consensus EPS estimate. 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 82.03 right now. This represents a premium compared to its industry's average Forward P/E of 34.22.
Also, we should mention that HUBS has a PEG ratio of 2.68. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 1.62 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 28, this industry ranks in the top 12% of all industries, numbering over 250.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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HubSpot, Inc. (HUBS) : Free Stock Analysis Report
