Business is moving to the cloud. And that’s good business for HubSpot (HUBS), which provides a cloud platform for companies to manage customer relations and inbound marketing. On Tuesday, the IBD SmartSelect Composite Rating for HubSpot stock jumped to 96, up from 93 the day before and nearing the best-possible 99 rating.
The new score tells you the company is now outperforming 96% of all stocks in terms of the most important fundamental and technical stock-picking criteria.
HubSpot Stock Lifted By Inbound Marketing Strategy
Inbound marketing tries to attract customers by creating valuable content and providing experiences relevant to them, rather than push marketing where companies simply push their message out in order to try to attract customers.
In Addition to its rising Composite Rating, HubSpot stock has a 93 Relative Strength Rating. The RS Rating tracks a stock’s share price performance over the last 52 weeks, and then compares the result to that of all other stocks. Top stocks have an RS rating of at least 80 before beginning big runs.
Its Accumulation/Distribution Rating of B shows moderate buying of HubSpot stock by institutional investors over the last 13 weeks.
One weak spot is HubSpot stock’s 77 EPS Rating, which tracks quarterly and annual earnings-per-share growth. Look for that to improve to 80 or better to show it’s in the top 20% of all stocks.
The company posted a mild 3% increase in earnings for Q1, its third quarter in a row of single-digit profit growth.
Sales are an animal of a different stripe. HubSpot’s revenue grew 41% last quarter to $281.4 million, following 35% growth the prior report. That marks three consecutive reports with rising sales growth, pushing HubSpot stock higher.
HubSpot earns the No. 3 rank among its peers in the Computer Software-Special Enterprise industry group. Cornerstone OnDemand (CSOD) is the top-ranked stock in the group.
HubSpot stock is trading within a buy range from a 574.93 entry from a cup without handle pattern. Its stock has risen 555% from a coronavirus crash low of 90.84 n March 20, 2020 to 594.84 Tuesday afternoon, up fractionally for the day.
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