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Is HubSpot (HUBS) A Solid Growth Stock?

Published 10/26/2017, 04:59 AM
Updated 07/09/2023, 06:31 AM
HUBS
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Growth stocks can be some of the most exciting picks in the market. Not only do these types of stocks captivate investors’ attention, but they’re known for producing big gains as well. However, growth stocks can also lose momentum when a growth story ends, so it’s vital to find companies still experiencing strong growth prospects in their business.

HubSpot Inc. (NYSE:HUBS) is one company that could be well-positioned for future earnings growth, and shares have already gained an impressive 78.6% year-to-date compared to the S&P 500’s return of 14.5%. An inbound marketing software platform, HubSpot helps companies attract visitors to their websites, convert leads, and close customers.

The company, which is in the Internet-Software industry, reported EPS growth of more than 51% last year, and this year looks to be promising as well. In fact, current growth estimates for fiscal 2017 call for roughly 125.6% EPS growth, and HubSpot projects long-term growth rates of 35%, suggesting impressive prospects going forward.

HUBS has actually seen estimates rise over the past month for the current fiscal year by almost 74%; seven analysts have revised their estimates upwards for the same time frame compared to none lower. Thanks to this rise in estimates, HubSpot is a Zacks Rank #2 (Buy), further emphasizing the company’s potential.

Investors looking for a fast-growing stock that has plenty of opportunities on the horizon, make sure to look at HUBS. With triple-digit earnings growth in its near future and an impressive Zacks Rank, this combination suggests that analysts believe even better earnings days are ahead for the digital advertising company.

HubSpot has beaten earnings estimates in the last 12 consecutive quarters. The company is set to report its third quarter fiscal 2017 results on November 1 after the bell. Current estimates sit at revenues of $95.96 million on a loss of 4 cents per share.

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