Stock Spotlight: Hubspot Gains +36% in Under 90 Days—Why We're Still Bullish

Dear Investor, 

This week’s spotlight is shining on HubSpot (HUBS)—a stock that has jumped +36% since being added to Investing Ideas on October 2, 2024. 
 
Software Analysts Felix Wang and Andrew Freedman—as well as Hedgeye CEO Keith McCullough—believe this stock is headed even higher. 

Our proven “triple-tested” stock-picking process combines fundamental, quantitative, and macro analysis. 

Here’s how we identified HUBS as a high-probability winner: 

1. Fundamentally Approved 

HubSpot (HUBS) is a leading CRM platform. Originally known for its marketing solutions, the company has evolved into a comprehensive marketing and sales platform. 

Recent updates highlight strong growth metrics: 

• App Downloads: Up 9.9% YoY in Q3 2024, accelerating from 3.6% YoY in Q2. 

• Active Users: Monthly active users grew 14% YoY, consistent with Q2 metrics. 

• Customer Growth: Projected to add 9,940 new customers in Q3, achieving 22.6% YoY growth (vs. street estimates of 22.3%). 

HubSpot is setting the stage for accelerated revenue growth into 2025. 

2. Signal Approved 

On top of our research team's fundamental analysis, our quantitative signaling process plays a critical role. 

Since Hedgeye CEO Keith McCullough’s signal turned bullish, and HUBS was added to our Investing Ideas newsletter on 10/2/24, stock has gained 36%. Our signal remains bullish, projecting continued growth. 

3. Macro Approved 

HubSpot aligns with Hedgeye’s macro view of sustained small business growth. Additionally, we recently entered what we call Quad 2, when growth and inflation both accelerate. Tech companies perform well during this phase of the investing cycle.