HubSpot (HUBS) Surpasses Market Returns: Some Facts Worth Knowing
In the latest trading session, HubSpot (HUBS) closed at $581.40, marking a +1.31% move from the previous day. This change outpaced the S&P 500's 1.23% gain on the day. Elsewhere, the Dow gained 1.06%, while the tech-heavy Nasdaq added 1.7%.
Heading into today, shares of the cloud-based marketing and sales software platform had lost 0.76% over the past month, lagging the Computer and Technology sector's gain of 1.98% and the S&P 500's gain of 0.94% in that time.
Analysts and investors alike will be keeping a close eye on the performance of HubSpot in its upcoming earnings disclosure. The company is expected to report EPS of $1.53, up 37.84% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $557.48 million, indicating a 18.7% growth compared to the corresponding quarter of the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for HubSpot. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 10.93% lower. Currently, HubSpot is carrying a Zacks Rank of #3 (Hold).
Investors should also note HubSpot's current valuation metrics, including its Forward P/E ratio of 88.78. This represents a premium compared to its industry's average Forward P/E of 33.82.
We can additionally observe that HUBS currently boasts a PEG ratio of 2.9. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.73.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 22% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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HubSpot, Inc. (HUBS) : Free Stock Analysis Report
