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

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In the latest trading session, HubSpot (HUBS - Free Report) closed at $510.34, marking a -0.27% move from the previous day. This change lagged the S&P 500's daily gain of 0.07%. At the same time, the Dow added 0.02%, and the tech-heavy Nasdaq gained 0.01%.

Heading into today, shares of the cloud-based marketing and sales software platform had gained 1.35% over the past month, lagging the Computer and Technology sector's gain of 1.5% and outpacing the S&P 500's gain of 0.38% 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%. Our most recent consensus estimate is calling for quarterly revenue of $533.15 million, up 20.09% from the year-ago period.

HUBS's full-year Zacks Consensus Estimates are calling for earnings of $5.27 per share and revenue of $2.12 billion. These results would represent year-over-year changes of +89.57% and +22.25%, respectively.

Investors should also note any recent changes to analyst estimates for HubSpot. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 has moved 0.06% lower. HubSpot is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that HubSpot has a Forward P/E ratio of 97.12 right now. This represents a premium compared to its industry's average Forward P/E of 36.65.

Also, we should mention that HUBS has a PEG ratio of 3.12. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. HUBS's industry had an average PEG ratio of 1.6 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 94, putting it in the top 38% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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