Yahoo Finance HubSpot (HUBS) Stock Sinks As Market Gains: Here's Why
HubSpot (HUBS) closed the latest trading day at $651.74, indicating a -0.01% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 0.02%. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq added 0.1%.
Shares of the cloud-based marketing and sales software platform witnessed a gain of 3.12% over the previous month, beating the performance of the Computer and Technology sector with its loss of 5.13% and the S&P 500's loss of 3.01%.
The investment community will be paying close attention to the earnings performance of HubSpot in its upcoming release. The company is expected to report EPS of $1.47, up 22.5% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $597.12 million, indicating a 19.04% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.87 per share and revenue of $2.56 billion, which would represent changes of +16.64% and +17.78%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for HubSpot. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, HubSpot possesses a Zacks Rank of #3 (Hold).
Digging into valuation, HubSpot currently has a Forward P/E ratio of 94.87. This expresses a premium compared to the average Forward P/E of 28.83 of its industry.
We can also see that HUBS currently has a PEG ratio of 3.11. 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. The Internet - Software industry had an average PEG ratio of 1.76 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 25% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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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HubSpot, Inc. (HUBS) : Free Stock Analysis Report
