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

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HubSpot (HUBS - Free Report) closed at $495.40 in the latest trading session, marking a +0.59% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.01%. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, added 0.67%.

Heading into today, shares of the cloud-based marketing and sales software platform had lost 10.72% over the past month, lagging the Computer and Technology sector's loss of 4.63% and the S&P 500's loss of 4.45% in that time.

Wall Street will be looking for positivity from HubSpot as it approaches its next earnings report date. In that report, analysts expect HubSpot to post earnings of $1.23 per share. This would mark 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.

Looking at the full year, our 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 +22.25%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for HubSpot. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. HubSpot currently has a Zacks Rank of #3 (Hold).

Digging into valuation, HubSpot currently has a Forward P/E ratio of 93.47. For comparison, its industry has an average Forward P/E of 36.37, which means HubSpot is trading at a premium to the group.

We can also see that HUBS currently has a PEG ratio of 3. 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. Internet - Software stocks are, on average, holding a PEG ratio of 1.51 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 76, putting it in the top 31% 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.

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


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