HubSpot HUBS shares rallied 12.7% in the last trading session to close at $549.05. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 17.5% loss over the past four weeks.

HubSpot is witnessing growing user engagement across its customer relationship management platform. The company is steadily advancing its AI capabilities through continuous innovation and strategic buyouts. HubSpot’s conversational AI tool, Breeze Copilot, has been gaining popularity. Its acquisition of Frame AI has significantly supported HubSpot’s ongoing efforts to combine powerful AI with an intuitive, scalable platform that can help businesses better anticipate and respond to customer needs.

Pricing optimization and the transition to a seat pricing model are expected to drive customer growth. Notably, the company generates a significant portion of its revenues from the international market. The U.S. Government’s decision to authorize a 90-day pause on higher tariffs for most countries except China will likely benefit the company in the near term. These factors have instilled investor optimism, which probably drove the share price appreciation.

This cloud-based marketing and sales software platform is expected to post quarterly earnings of $1.78 per share in its upcoming report, which represents a year-over-year change of +6%. Revenues are expected to be $698.14 million, up 13.1% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For HubSpot, the consensus EPS estimate for the quarter has been revised 57.6% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on HUBS going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

HubSpot is part of the Zacks Internet - Software industry. AvidXchange Holdings, Inc. AVDX, another stock in the same industry, closed the last trading session 9.3% higher at $7.88. AVDX has returned 4.5% in the past month.

AvidXchange's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.06. Compared to the company's year-ago EPS, this represents no change. AvidXchange currently boasts a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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