HubSpot is Monday's selection for IBD 50 Growth Stocks To Watch as shares hover in a buy zone with a buy point at 581.40. HubSpot stock also is holding near its 50-day moving average, according to chart analysis tools on IBD MarketSurge.
Shares broke out in December in light volume but managed to hold on to their gains. HubSpot stock fell after fourth-quarter results on Feb. 14 but found support at the 50-day line. Sales of $581.9 million grew 24%, while earnings per share of $1.76 were higher by 59%.
For the current quarter, HubSpot gave a sales outlook of $597 million at the midpoint with earnings per share of $1.49. That suggests sales growth of 19% and earnings growth of 24%.
HubSpot offers software to businesses. The company offers "freemium" versions of customized customer relationship management tools as well as paid versions. A freemium plan is a business model that offers free limited features of a product or service with the option of switching to a paid model for more features.
HubSpot's free tools allow businesses to track customer interactions and store data. Businesses start their plans for free with the option of converting them to paid plans that offer more tools.
HubSpot Stock Shows Impressive Gains After IPO
Shares went public in 2014 at an initial listing price of 25 a share and have gained more than 2,350% over the decade.
The IBD Composite Rating is a strong 92 while the stock boasts a perfect EPS Rating of 99. The Relative Strength Rating is an adequate 86.
The RS Rating has stayed above 85 over the past year, showing that the stock has outperformed over 85% of stocks in the Investors' Business Daily database.
Mutual funds own 66% of outstanding shares. More funds have been buying shares of HubSpot stock in the last four quarters, including the Artisan Mid Cap Fund (ARTMX) and the Columbia Acorn Fund (ACRNX).
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