HubSpot (HUBS) Stock Falls Amid Market Uptick: What Investors Need to Know
HubSpot (HUBS) closed the most recent trading day at $623.33, moving -1.38% from the previous trading session. This change lagged the S&P 500's 0.86% gain on the day. Meanwhile, the Dow experienced a rise of 1.22%, and the technology-dominated Nasdaq saw an increase of 0.51%.
Heading into today, shares of the cloud-based marketing and sales software platform had gained 2.67% over the past month, lagging the Computer and Technology sector's gain of 3.76% and the S&P 500's gain of 2.84% in that time.
The investment community will be closely monitoring the performance of HubSpot in its forthcoming earnings report. The company is forecasted to report an EPS of $1.49, showcasing a 24.17% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $597.12 million, up 19.04% from the year-ago period.
HUBS's full-year Zacks Consensus Estimates are calling for earnings of $6.87 per share and revenue of $2.56 billion. These results would represent year-over-year changes of +16.64% and +17.78%, respectively.
It is also important to note the recent changes to analyst estimates for HubSpot. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection remained stagnant. HubSpot presently features a Zacks Rank of #3 (Hold).
Digging into valuation, HubSpot currently has a Forward P/E ratio of 92. Its industry sports an average Forward P/E of 30.17, so one might conclude that HubSpot is trading at a premium comparatively.
One should further note that HUBS currently holds a PEG ratio of 3.01. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Internet - Software industry stood at 1.85 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 40, putting it in the top 16% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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HubSpot, Inc. (HUBS) : Free Stock Analysis Report
