HubSpot (HUBS) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - HubSpot (HUBS) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system highlights the strong correlation between changes in earnings estimates and near-term stock price movements, making it a valuable tool for investors [3][5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to price movements based on their buying or selling actions [3]. HubSpot's Earnings Outlook - HubSpot is projected to earn $8 per share for the fiscal year ending December 2024, reflecting a year-over-year increase of 35.8% [7]. - Over the past three months, the Zacks Consensus Estimate for HubSpot has surged by 107%, indicating a significant upward revision in earnings expectations [7]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks yielding an average annual return of +25% since 1988 [6]. - HubSpot's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [9].