Investors might be losing patience for HubSpot’s (NYSE:HUBS) increasing losses, as stock sheds 3.6% over the past week
The most you can lose on any stock (assuming you don’t use leverage) is 100% of your money. But on a lighter note, a good company can see its share price rise well over 100%. For instance, the price of HubSpot, Inc. (NYSE:HUBS) stock is up an impressive 289% over the last five years. On top of that, the share price is up 26% in about a quarter.
While this past week has detracted from the company’s five-year return, let’s look at the recent trends of the underlying business and see if the gains have been in alignment.
See our latest analysis for HubSpot
Given that HubSpot didn’t make a profit in the last twelve months, we’ll focus on revenue growth to form a quick view of its business development. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That’s because it’s hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
In the last 5 years HubSpot saw its revenue grow at 30% per year. Even measured against other revenue-focussed companies, that’s a good result. Meanwhile, its share price performance certainly reflects the strong growth, given the share price grew at 31% per year, compound, during the period. This suggests the market has well and truly recognized the progress the business has made. To our minds that makes HubSpot worth investigating – it may have its best days ahead.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
HubSpot is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. If you are thinking of buying or selling HubSpot stock, you should check out this free report showing analyst consensus estimates for future profits.
A Different Perspective
We’re pleased to report that HubSpot shareholders have received a total shareholder return of 68% over one year. That’s better than the annualised return of 31% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It’s always interesting to track share price performance over the longer term. But to understand HubSpot better, we need to consider many other factors. For example, we’ve discovered 1 warning sign for HubSpot that you should be aware of before investing here.
Of course HubSpot may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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