Can HubSpot (HUBS) Keep The Earnings Streak Alive In Q3?

We expect HubSpot, Inc. (NYSE:HUBS) to beat expectations when it reports third-quarter 2016 results on Nov 2.

Why a Likely Positive Surprise?

Our proven model shows that HubSpot is likely to beat earnings because it has the right combination of two key ingredients.

Positive Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate (loss of 31 cents) and the Zacks Consensus Estimate (loss of 36 cents), stands at +13.89%. This is very meaningful and a leading indicator of a likely positive earnings surprise for shares. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.

Zacks Rank #3 (Hold): Note that stocks with Zacks Rank of #1 (Strong Buy), 2 (Hold) and 3 have a significantly higher chance of beating earnings. The Sell-rated stocks (#4 and 5) should never be considered going into an earnings announcement.

The combination of HubSpot’s Zacks Rank #3 and +13.89% ESP makes us very confident in looking for a positive surprise.

What is Driving the Better-Than-Expected Results?

HubSpot is a provider of inbound marketing software platform that helps companies attract visitors to their websites, convert visitors into leads, and close leads into customers. We are encouraged by the company’s sustained focus on investing in new product developments and international expansion, which will continue to drive its top line.

Furthermore, a continuous rise in the rate measuring HubSpot’s revenue per user makes us optimistic about its top-line performance in the to-be-reported quarter.

Moreover, it is noteworthy that HubSpot has surpassed the Zacks Consensus Estimate in the last four quarters with an average positive surprise of 13.95%.

HUBSPOT INC Price and EPS Surprise

Other Stocks to Consider

Here are some other companies you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:

Methanex Corporation (NASDAQ:MEOH) with Earnings ESP of +600.00% and a Zacks Rank #3

Carmike Cinemas Inc. (NASDAQ:CKEC) with Earnings ESP of +166.67% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here

Freshpet, Inc. (NASDAQ:FRPT) with an Earnings ESP of +100.00% and a Zacks Rank #3

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