Jim Cramer Flags HubSpot’s 74% Drop and 20x Earnings Valuation
HubSpot’s share price has fallen 74% from its peak and now trades at 20 times projected earnings despite forecasted 20% profit growth this year. Jim Cramer highlighted the stock as very cheap and suggested waiting for next Wednesday’s earnings report to buy on a potential post-results selloff.
1. Cramer’s Valuation Assessment
Jim Cramer identified HubSpot as undervalued on his screening model, noting its current price-earnings ratio is low relative to expected growth and labeling the stock as very cheap.
2. Share Performance and Financial Metrics
HubSpot’s stock has declined 74% from its all-time high while analysts project 20% earnings growth this year, and the shares trade at 20 times forecasted profits.
3. Upcoming Earnings Catalyst
HubSpot is set to release its quarterly results next Wednesday, and Cramer advised waiting for any selloff after strong numbers before initiating a position.