Software stocks had a rough Monday, and HubSpot Inc. (HUBS) was right in the middle of it. The stock fell more than 5% as rising oil prices and Treasury yields put the squeeze on growth-oriented technology shares. When energy gets expensive, inflation worries tend to follow, and so does the expectation that interest rates stay higher for longer. That's not a great backdrop for companies whose valuations lean heavily on future earnings.
The broader market wasn't helping either. The Nasdaq is down 0.91% while the S&P 500 has shed 0.56%.
Market breadth remains weak, with only three of 11 sectors trading higher. The Technology sector is down about 0.6%, adding pressure on software and other growth stocks.
HubSpot Technical Analysis
HubSpot remains in a bearish longer-term trend.
The stock is trading 19.4% below its 200-day simple moving average of $249.79. It is also 12.7% below its 50-day SMA of $230.86 and 13.4% below its 20-day SMA of $232.47.
Meanwhile, the MACD remains below its signal line, while the histogram is negative. That suggests momentum remains weak.
Resistance sits near $233, close to the 20-day and 50-day moving averages. Support is around $185.50, followed by the 52-week low of $169.63.
Analyst Outlook
HubSpot carries a Buy consensus rating with an average price forecast of $258.04.
On Sept. 21, BMO Capital maintained a Market Perform rating and raised its price forecast to $250. Truist Securities maintained a Buy rating and raised its forecast to $275. Stephens maintained an Equal-Weight rating and raised its forecast to $255.
The stock trades at a price-to-earnings multiple of about 76.1.
Edge Rankings Paint A Mixed Picture
The Edge scorecard shows a mixed setup for HubSpot.
The stock has a Momentum score of 10.23 and a Value score of 29.66. However, its Growth score stands at 95.71.
That combination points to strong underlying growth metrics but weak share-price momentum and a relatively demanding valuation.
HubSpot ETF Exposure
The RockCreek Global Equality ETF (NASDAQ: RCGE) has a 0.74% weighting in HubSpot, while the Pacer S&P World 3AI Top 300 ETF (NASDAQ: WDAI) has a 0.67% weighting.
As a result, flows into or out of these funds can create incremental buying or selling activity in HubSpot shares.
HUBS Price Action
HUBS Stock Price Activity: HubSpot shares were down 5.46% at $202.07 at the time of publication on Monday, according to market data.
