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HubSpot (HUBS) Gains As Market Dips: What You Should Know

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HubSpot (HUBS - Free Report) closed the most recent trading day at $555.36, moving +0.8% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.1%. At the same time, the Dow added 0.33%, and the tech-heavy Nasdaq lost 5.8%.

Prior to today's trading, shares of the cloud-based marketing and sales software platform had gained 5.95% over the past month. This has outpaced the Computer and Technology sector's gain of 3.39% and the S&P 500's gain of 3.39% in that time.

Wall Street will be looking for positivity from HubSpot as it approaches its next earnings report date. The company is expected to report EPS of $0.99, up 125% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $504.45 million, up 19.61% from the year-ago period.

HUBS's full-year Zacks Consensus Estimates are calling for earnings of $4.84 per share and revenue of $2.09 billion. These results would represent year-over-year changes of +74.1% and +20.51%, respectively.

Investors should also note any recent changes to analyst estimates for HubSpot. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.45% higher. HubSpot currently has a Zacks Rank of #3 (Hold).

Digging into valuation, HubSpot currently has a Forward P/E ratio of 113.85. For comparison, its industry has an average Forward P/E of 43.82, which means HubSpot is trading at a premium to the group.

Investors should also note that HUBS has a PEG ratio of 3.97 right now. 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 Internet - Software industry currently had an average PEG ratio of 1.78 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 24% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow HUBS in the coming trading sessions, be sure to utilize Zacks.com.


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