Four reasons to watch this AI stock
It helps to look at the holding company to gauge the quality of the stock. HubSpot (HUBS) share the focus on the most preferred stock. Leaders of the IBD sector Screen with artificial intelligence powerhouses Nivea (NVDA), Now service (right now) and Palantir Technologies (PLTR).
Like Nvidia, ServiceNow and Palantir, HubSpot earns the highest possible revenue 99 integrated rating. Plus, when setting up a potential cloud-based sales and marketing organization, here are four reasons why it ranks among the best AI stocks to watch.
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1. Strong and steady income growth
in Cambridge, Mass. Based in, HubSpot provides an AI-powered platform serving more than 238,000 customers in 14 global offices. The cloud-based technology serves customers in an integrated ecosystem with centers that focus on marketing, sales, business, operations and customer service functions.
On January 6, HubSpot announced the completion of the previously announced Getting frame AIan AI-powered conversational information platform.
Over the past three years, HubSpot has experienced an average annual revenue growth of 77 percent. It has posted an average return on equity of 37.6 percent over the past three quarters. In the third quarter, the company reported a 35% year-over-year profit to $2.18 per share.
Sales rose 20 percent to $669.7 million. Set to report next on Feb. 12, analysts are forecasting sales of $673.6 million, which would represent a 16 percent increase from the year-ago quarter.
Earnings estimates call for a 25% increase to $2.19 per share. For the full year, Wall Street expects a 28% gain to $8.
2. HubSpot stock with clear interest
Recovering from its 10-week moving average low in July, HubSpot is showing signs of interest as it builds new ground.
With an A- Accumulation/Distribution Rating and 1.3 Up/Down Volume, 122 funds have an A+ rating from IBD’s own HubSpot shares.
If Nvidia stays below its 50-day moving average and Palantir backs up on that benchmark, HubSpot will stand above that line. As the 50-day line continues to move higher, HubSpot is now testing support at the 21-day moving average.
3. HubSpot is highly rated in the industry.
with highly rated industry peers Aplovin (APP) and Apfolio (APPF), HubSpot stock was acquired from a special enterprise software group.
The group ranks number 15 out of 197 industries IBD tracks. That’s a positive for HubSpot, as winning shares come from top-tier industry groups.
In another sign of the quality company that the stock is holding, HubSpot gets a spot on IBD Large Cap 20 Along with Palantir and ServiceNow, both come from the No. 10-ranked enterprise software group.
4. After the telltale sign of HubSpot stock flashing
As the Nasdaq showed resilience by rising above its 50-day line on Wednesday, HubSpot stock continued to perform in a bearish pattern.
A telling clue to this formation is how HubSpot recently reset its base number, making the new setup a primary pattern. Such forms have a higher chance of success than late-comers such as Nvidia’s recent breakout.
HubSpot updated its baseline numbers in May, down from a previous pattern low. After a slight rebound from a new primary base in November, the stock pulled back to form a flat base as part of this new base-on-base formation. The current buy point is 762.47.
Note how trading has strengthened in recent weeks. That means the stock could rally higher by spring and start a new breakout.
Follow Matthew Galgani on X (formerly Twitter). @IBD_MGalgani.
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