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HubSpot (HUBS) Outpaces Stock Market Gains: What You Should Know

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HubSpot (HUBS - Free Report) closed at $185.72 in the latest trading session, marking a +1.54% move from the prior day. This change outpaced the S&P 500's 1.5% gain on the day. At the same time, the Dow added 1.44%, and the tech-heavy Nasdaq gained 2.1%.

Prior to today's trading, shares of the cloud-based marketing and sales software platform had gained 9.53% over the past month. This has outpaced the Computer and Technology sector's gain of 3.43% and the S&P 500's gain of 0.54% in that time.

Investors will be hoping for strength from HUBS as it approaches its next earnings release, which is expected to be February 12, 2020. In that report, analysts expect HUBS to post earnings of $0.42 per share. This would mark year-over-year growth of 13.51%. Meanwhile, our latest consensus estimate is calling for revenue of $180.98 million, up 25.66% from the prior-year quarter.

Any recent changes to analyst estimates for HUBS should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 2.83% lower within the past month. HUBS is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, HUBS is currently trading at a Forward P/E ratio of 115.1. This represents a premium compared to its industry's average Forward P/E of 50.29.

We can also see that HUBS currently has a PEG ratio of 2.77. 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. The Internet - Software was holding an average PEG ratio of 2.56 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 41% 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.

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


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