Weekly BullsEye | If The Bull Market Already Started, Which Stock Will Help You Get The Most Return Out Of It?

Stock SpotlightFriday, Feb 16, 2024 10:02 am ET

2min read

For many investors, NVIDA's shares are too expensive, Tesla sucks right now, and Apple's future looks uncertain, but here is another stock that will help you capture great returns from this ongoing bull market.

As we've entered into 2024, the S&P 500 index continues its ascent, which makes many believe the latest bull market has started. If indeed we are in a new round of bull market, a multitude of stocks are destined to rise. We believe that HubSpot will be an excellent choice to help investors fully benefit from this bull market.

HubSpot is a sector leader in Customer Relationship Management (CRM) software, providing a platform that includes productivity applications for marketing, sales, and customer service, as well as solutions for content management and payments.

These tools assist businesses in interacting with potential clients across multiple channels (search, social media, and websites), converting leads into paying customers, and maintaining longstanding customer relationships.

This company has seen a surge of 70% over the past year, and a stunning return rate of 310% over the past five years, but we think it still has bright prospects for continued growth.

Solid Industry Position, Great Growth Opportunities

Thanks to exceptional business strategies, HubSpot is now a leader in the Customer Relationship Management (CRM) sector: Prestigious research company, G2, ranked HubSpot as the Best Global Software Seller in 2023 based on user satisfaction and market presence scores. This means that HubSpot outperformed software giants like Microsoft, Salesforce, and Adobe in the rating.

Excellent reviews not only bring the company impressive subscription revenues, which account for 98% of the total revenue in the last reportable quarter but also provide it with a customer base far surpassing its peers. These mean that as the CRM market continues to expand, HubSpot is better positioned to take advantage of the growth having already squared away a great reputation and quantity of users.

AI brings New Development Momentum

AI integration into operation activity has become a trend and HubSpot is no exception.

In September, HubSpot announced a series of Artificial Intelligence (AI) innovations that will automate tasks and retrieve insights across its CRM platform. For instance, HubSpot AI allows clients to forecast sales, create marketing campaigns, respond to customer service inquiries, and construct web pages. HubSpot also introduced ChatSpot, a generative AI assistant based on ChatGPT that can retrieve information, run reports, and generate text content such as blog posts and emails.

All these upgrades from the side of AI will make the already convenient HubSpot platform more attractive to users, and these more advanced functionalities will further drive its business growth.

Bright Growth Prospects

As the market evolves, HubSpot's role as a key player in the CRM market is even gonna become more crucial

In 2023, HubSpot valued its addressable market at $51 billion, and the CRM market is forecast to grow at a compound annual rate of 14% by 2030, reports Grand View Research. Given HubSpot's strong presence among SMEs, its push upmarket, and its rapid product development capabilities (evidenced by its quick response in the AI sector), HubSpot is likely to outpace the industry average growth rate.

Therefore, Wall Street expects the company to grow sales at an annual rate of 21% over the next five years. Also Notably, The company is set to release its earnings report on February 14, 2024. It's projected to declare an EPS of $1.53, which represents a growth of 37.84% from the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts revenue of $557.48 million, indicating a surge of 18.7% compared to the same quarter a year earlier.

In general, given these factors, HubSpot's growth prospects appear robust, with the company well-equipped to navigate the evolving market landscape and capitalize on the growing demand for CI and sales tracking solutions. The integration of advanced technologies and the development of customizable, industry-specific offerings are also likely to drive HubSpot's performance in the market and make it an attractive option for investors and customers alike.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.