Benzinga - by Zacks, Benzinga Contributor.
HubSpot (NYSE: HUBS) shares soared 3.8% in the last trading session to close at $578.43. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6.3% loss over the past four weeks.
The uptrend is primarily attributable to solid HubSpot AI traction. HubSpot has integrated HubSpot AI across its entire product suites and customer platform, enabling users to leverage AI features at no additional cost. Pricing optimization and the transition to a seat pricing model are expected to drive customer growth.
The seat pricing model lowers the barrier for customers to get started with HubSpot and mitigates pricing friction for upgrades. The model intends to encourage more clients to adopt HubSpot services and expand their usage over time. It is anticipated to lead to healthier customer cohorts and is expected to contribute positively to the company's growth over time.
This cloud-based marketing and sales software platform is expected to post quarterly earnings of $1.63 per share in its upcoming report, which represents a year-over-year change of +21.6%. Revenues are expected to be $618.14 million, up 16.8% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For HubSpot, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on HUBS going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold).
HubSpot is a member of the Zacks Internet - Software industry. One other stock in the same industry, EverCommerce (NASDAQ: EVCM), finished the last trading session 2% higher at $10.02. EVCM has returned -5.1% over the past month.
For EverCommerce, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.01. This represents a change of -133.3% from what the company reported a year ago. EverCommerce currently has a Zacks Rank of #3 (Hold).
To read this article on Zacks.com click here.