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HubSpot (HUBS) Dips More Than Broader Markets: What You Should Know

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HubSpot (HUBS - Free Report) closed at $548.79 in the latest trading session, marking a -0.42% move from the prior day. This change lagged the S&P 500's 0.02% loss on the day. Meanwhile, the Dow gained 0.23%, and the Nasdaq, a tech-heavy index, lost 0.12%.

Coming into today, shares of the cloud-based marketing and sales software platform had gained 6.85% in the past month. In that same time, the Computer and Technology sector gained 3.63%, while the S&P 500 gained 5.14%.

HubSpot will be looking to display strength as it nears its next earnings release, which is expected to be August 2, 2023. 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 might also notice recent changes to analyst estimates for HubSpot. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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. Within the past 30 days, our consensus EPS projection remained stagnant. HubSpot is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that HubSpot has a Forward P/E ratio of 113.89 right now. For comparison, its industry has an average Forward P/E of 43.03, which means HubSpot is trading at a premium to the group.

We can also see that HUBS currently has a PEG ratio of 3.97. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. HUBS's industry 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 group has a Zacks Industry Rank of 63, putting it in the top 25% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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