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

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The latest trading session saw HubSpot (HUBS - Free Report) ending at $633.85, denoting a -0.59% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.03%. Meanwhile, the Dow gained 0.41%, and the Nasdaq, a tech-heavy index, added 0.12%.

Prior to today's trading, shares of the cloud-based marketing and sales software platform had gained 6.3% over the past month. This has outpaced the Computer and Technology sector's loss of 0.55% and the S&P 500's loss of 0.9% in that time.

The upcoming earnings release of HubSpot will be of great interest to investors. On that day, HubSpot is projected to report earnings of $1.47 per share, which would represent year-over-year growth of 22.5%. Our most recent consensus estimate is calling for quarterly revenue of $597.12 million, up 19.04% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.87 per share and a revenue of $2.56 billion, indicating changes of +16.64% and +17.78%, respectively, from the former year.

It's also important for investors to be aware of any recent modifications to analyst estimates for HubSpot. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding 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 #5 (Strong Sell).

From a valuation perspective, HubSpot is currently exchanging hands at a Forward P/E ratio of 92.81. This expresses a premium compared to the average Forward P/E of 27.33 of its industry.

It's also important to note that HUBS currently trades at a PEG ratio of 3.04. 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. HUBS's industry had an average PEG ratio of 1.79 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 47, this industry ranks in the top 19% of all industries, numbering over 250.

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.

Remember to apply to follow these and more stock-moving metrics during the upcoming trading sessions.

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