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HubSpot (HUBS) Gains But Lags Market: What You Should Know

HubSpot (HUBS) closed the most recent trading day at $483.24, moving +0.18% from the previous trading session. This move lagged the S&P 500's daily gain of 0.4%. Meanwhile, the Dow gained 0.13%, and the Nasdaq, a tech-heavy index, added 0.45%.

Heading into today, shares of the cloud-based marketing and sales software platform had lost 5.92% over the past month, lagging the Computer and Technology sector's loss of 1.45% and the S&P 500's loss of 1.38% 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%. Our most recent consensus estimate is calling for quarterly revenue of $533.15 million, up 20.09% from the year-ago period.

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 should also note any recent changes to analyst estimates for HubSpot. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0.06% lower within the past month. HubSpot is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, HubSpot is holding a Forward P/E ratio of 91.55. For comparison, its industry has an average Forward P/E of 37.22, which means HubSpot is trading at a premium to the group.

Investors should also note that HUBS has a PEG ratio of 2.94 right now. 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. HUBS's industry had an average PEG ratio of 1.56 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 84, putting it in the top 34% 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.

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

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