HubSpot (HUBS) closed the most recent trading day at $623.33, moving -1.38% from the previous trading session. This change trailed the S&P 500’s 0.86% gain on the day. Meanwhile, the Dow experienced an increase of 1.22%, and the technology-dominated Nasdaq saw an increase of 0.51%.
Entering today, shares of the cloud-based marketing and sales software platform have gained 2.67% over the past month, lagging the Computer & Technology sector’s gain of 3.76% and the S&P 500’s gain of 2.84% over that time.
The investment community will be closely monitoring HubSpot’s performance in its next earnings report. The company is expected to report EPS of $1.49, indicating a 24.17% upward movement from the corresponding quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for earnings predicts net sales of $597.12 million, up 19.04% from the year-ago period.
HUBS’s full-year Zacks Consensus Estimates call for earnings of $6.87 per share and revenue of $2.56 billion. These results would represent year-on-year changes of +16.64% and +17.78%, respectively.
It’s also important to note the recent changes to analyst ratings for HubSpot. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive rating revisions a sign of optimism about the company’s business outlook.
Our research reveals that these valuation changes are directly linked with the stock price performance in the near future. Investors can take advantage of this by using the Zacks Rank. This model takes these rating changes into account and provides a simple, reasonable rating system.
The Zacks Rank system, ranging from No. 1 (Strong Buy) to No. 5 (Strong Sell), has a remarkable record of outperformance, validated by third-party audits, with stocks rated No. 1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has remained stagnant. HubSpot currently has a Zacks Rank of number 3 (Hold).
Digging into valuation, HubSpot currently has a Forward P/E ratio of 92. Its industry has an average Forward P/E of 30.17, so one could conclude that HubSpot trades at a premium in comparison.
It should be further noted that HUBS currently holds a PEG ratio of 3.01. The PEG ratio is similar to the widely used P/E ratio, but this metric also takes into account the company’s expected earnings growth. The average PEG ratio for the Internet – Software industry stood at 1.85 at the close of the market yesterday.
The Internet – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 40, placing it in the top 16% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our particular industry groups by determining the average Zacks Rank of the individual stocks that make up the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock movement metrics during the next trading sessions.
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HubSpot, Inc. (HUBS): Free Analysis Report
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