Why HubSpot (HUBS) Outpaced the Stock Market Today
In the latest trading session, HubSpot (HUBS) closed at $579.90, marking a +0.27% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.17%. Meanwhile, the Dow lost 0.05%, and the Nasdaq, a tech-heavy index, added 0.2%.
The cloud-based marketing and sales software platform's shares have seen an increase of 23.65% over the last month, surpassing the Computer and Technology sector's gain of 4.37% and the S&P 500's gain of 4.71%.
Market participants will be closely following the financial results of HubSpot in its upcoming release. It is anticipated that the company will report an EPS of $1.53, marking a 37.84% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $557.44 million, up 18.69% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.67 per share and revenue of $2.15 billion, indicating changes of +103.96% and +23.96%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for HubSpot. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.71% lower. HubSpot is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, HubSpot currently has a Forward P/E ratio of 102. This indicates a premium in contrast to its industry's Forward P/E of 39.53.
One should further note that HUBS currently holds a PEG ratio of 3.33. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.81.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 31, this industry ranks in the top 13% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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HubSpot, Inc. (HUBS) : Free Stock Analysis Report
