HubSpot, Inc. (HUBS) Hit a 52 Week High, Can the Run Continue?

Have you been paying attention to shares of HubSpot (HUBS)? Shares have been on the move with the stock up 26.7% over the past month. The stock hit a new 52-week high of $762.47 in the previous session. HubSpot has gained 30.5% since the start of the year compared to the 33.3% move for the Zacks Computer and Technology sector and the 40.8% return for the Zacks Internet - Software industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 6, 2024, HubSpot reported EPS of $2.18 versus consensus estimate of $1.89 while it beat the consensus revenue estimate by 3.54%.For the current fiscal year, HubSpot is expected to post earnings of $7.96 per share on $2.59 billion in revenues. This represents a 35.14% change in EPS on a 19.36% change in revenues. For the next fiscal year, the company is expected to earn $9.16 per share on $3.01 billion in revenues. This represents a year-over-year change of 15.13% and 16.01%, respectively.Valuation MetricsHubSpot may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.HubSpot has a Value Score of F. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 95.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 33.7X. On a trailing cash flow basis, the stock currently trades at 5X versus its peer group's average of 29X. Additionally, the stock has a PEG ratio of 4.68. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, HubSpot currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if HubSpot passes the test. Thus, it seems as though HubSpot shares could have a bit more room to run in the near term.How Does HUBS Stack Up to the Competition?Shares of HUBS have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Upland Software, Inc. (UPLD). UPLD has a Zacks Rank of # 1 (Strong Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of B.Earnings were strong last quarter. Upland Software, Inc. beat our consensus estimate by 90.91%, and for the current fiscal year, UPLD is expected to post earnings of $0.99 per share on revenue of $274.83 million.Shares of Upland Software, Inc. have gained 80.2% over the past month, and currently trade at a forward P/E of 3.85X and a P/CF of 0.55X.The Internet - Software industry is in the top 16% of all the industries we have in our universe, so it looks like there are some nice tailwinds for HUBS and UPLD, even beyond their own solid fundamental situation.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report HubSpot, Inc. (HUBS): Free Stock Analysis Report Upland Software, Inc. (UPLD): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks