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HubSpot (HUBS) Stock Moves -0.13%: What You Should Know

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The latest trading session saw HubSpot (HUBS - Free Report) ending at $444.83, denoting a -0.13% adjustment from its last day's close. This move was narrower than the S&P 500's daily loss of 0.85%. Elsewhere, the Dow lost 0.75%, while the tech-heavy Nasdaq lost 0.96%.

Shares of the cloud-based marketing and sales software platform have depreciated by 11.81% over the course of the past month, underperforming the Computer and Technology sector's loss of 2.07% and the S&P 500's loss of 3.02%.

The upcoming earnings release of HubSpot will be of great interest to investors. The company is predicted to post an EPS of $1.23, indicating a 78.26% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $533.15 million, up 20.09% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.27 per share and a revenue of $2.12 billion, representing changes of +89.57% and +22.25%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for HubSpot. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, HubSpot boasts a Zacks Rank of #3 (Hold).

In terms of valuation, HubSpot is currently trading at a Forward P/E ratio of 84.53. Its industry sports an average Forward P/E of 37.04, so one might conclude that HubSpot is trading at a premium comparatively.

We can also see that HUBS currently has a PEG ratio of 2.71. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.47.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 72, positioning it in the top 29% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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