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HubSpot (HUBS) Stock Dips While Market Gains: Key Facts

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HubSpot (HUBS - Free Report) closed the latest trading day at $421.12, indicating a -0.63% change from the previous session's end. This change lagged the S&P 500's 1.05% gain on the day. Meanwhile, the Dow experienced a rise of 0.67%, and the technology-dominated Nasdaq saw an increase of 1.64%.

The cloud-based marketing and sales software platform's stock has dropped by 9.05% in the past month, falling short of the Computer and Technology sector's loss of 2.51% and the S&P 500's loss of 2.21%.

The investment community will be closely monitoring the performance of HubSpot in its forthcoming earnings report. The company is scheduled to release its earnings on November 8, 2023. On that day, HubSpot is projected to report earnings of $1.23 per share, which would represent year-over-year growth of 78.26%. At the same time, our most recent consensus estimate is projecting a revenue of $533.7 million, reflecting a 20.21% rise from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.27 per share and revenue of $2.12 billion. These totals would mark changes of +89.57% and +22.47%, respectively, from last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for HubSpot. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% lower. HubSpot is holding a Zacks Rank of #3 (Hold) right now.

With respect to valuation, HubSpot is currently being traded at a Forward P/E ratio of 80.41. This denotes a premium relative to the industry's average Forward P/E of 34.96.

Meanwhile, HUBS's PEG ratio is currently 2.58. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 1.5 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 67, finds itself in the top 27% echelons 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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