HubSpot (HUBS) Registers a Bigger Fall Than the Market: Important Facts to Note
The latest trading session saw HubSpot (HUBS) ending at $580.54, denoting a -1.44% adjustment from its last day's close. This change lagged the S&P 500's daily loss of 0.28%. At the same time, the Dow lost 0.06%, and the tech-heavy Nasdaq lost 0.56%.
The cloud-based marketing and sales software platform's stock has climbed by 19.26% in the past month, exceeding the Computer and Technology sector's gain of 4.68% and the S&P 500's gain of 5.24%.
Market participants will be closely following the financial results of HubSpot in its upcoming release. In that report, analysts expect HubSpot to post earnings of $1.53 per share. This would mark year-over-year growth of 37.84%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $557.44 million, up 18.69% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.67 per share and a revenue of $2.15 billion, representing changes of +103.96% and +23.96%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for HubSpot. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.08% fall in the Zacks Consensus EPS estimate. Right now, HubSpot possesses a Zacks Rank of #3 (Hold).
In terms of valuation, HubSpot is presently being traded at a Forward P/E ratio of 103.89. This valuation marks a premium compared to its industry's average Forward P/E of 40.02.
It is also worth noting that HUBS currently has a PEG ratio of 3.4. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 1.81 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 29, positioning it in the top 12% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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
