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

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HubSpot (HUBS - Free Report) closed at $550.58 in the latest trading session, marking a +1.18% move from the prior day. This move outpaced the S&P 500's daily loss of 0.32%. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq lost 0.89%.

Heading into today, shares of the cloud-based marketing and sales software platform had gained 11.49% over the past month, outpacing the Computer and Technology sector's gain of 1.88% and the S&P 500's loss of 0.12% in that time.

HubSpot will be looking to display strength as it nears its next earnings release. On that day, HubSpot is projected to report earnings of $1.23 per share, which would represent year-over-year growth of 78.26%. Meanwhile, our latest consensus estimate is calling for revenue of $533.15 million, up 20.09% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.27 per share and revenue of $2.12 billion, which would represent changes of +89.57% and +22.25%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for HubSpot. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.59% lower. HubSpot is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, HubSpot is currently trading at a Forward P/E ratio of 103.27. Its industry sports an average Forward P/E of 39.25, so we one might conclude that HubSpot is trading at a premium comparatively.

Investors should also note that HUBS has a PEG ratio of 3.41 right now. 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. The Internet - Software industry currently had an average PEG ratio of 1.65 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 84, putting it in the top 34% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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