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Top 3 Reasons HubSpot is a Must-Buy Stock Right Now

Who doesn't love a good bargain, especially when it comes to investing? While paying a premium for the right stock is often worth it, snagging a great stock at a discounted price is even better. Enter HubSpot (HUBS -0.33%), a growth stock that’s currently down 31% from its April high, presenting a golden opportunity for savvy investors.

The Alphabet Twist

First, let's talk about why HubSpot's shares took a nosedive. HubSpot, a software company specializing in customer relationship management (CRM) and other digital tools, caught the eye of tech giant Alphabet earlier this year. HubSpot boasts a $24 billion market cap and reported nearly $2.2 billion in revenue last year—a 25% increase from the previous year. Alphabet’s interest in HubSpot made waves in April, but last week, the tech giant decided to back out. This change of heart caused HubSpot's shares to plummet by 19%, bringing the total drop to 31% since April.

Why HubSpot is Still a Winner

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But here's the kicker: just because Alphabet pulled out doesn't mean HubSpot isn’t a valuable investment. In fact, it might be an even better deal now. Here are three compelling reasons to consider buying HubSpot stock:

1. Quality and Caliber

Alphabet's initial interest alone speaks volumes about HubSpot’s potential. While Alphabet didn’t find the synergies it was looking for, the mere fact that HubSpot was on its radar is a testament to the company’s quality.

2. Impressive Growth

HubSpot’s growth trajectory is impressive. Last year’s 25% revenue increase is expected to be followed by 18% growth this year and next. Moreover, earnings are projected to grow even faster, continuing this upward trend through 2028. Despite not offering a unique product, HubSpot’s integrated solutions make it a leader in the B2B marketing automation market, according to Gartner.

3. Analyst Confidence

If that’s not enough, consider this: analysts have set a consensus price target of $660.33 for HubSpot, nearly 40% above its current price. Out of 31 analysts, 22 rate HubSpot as a strong buy.

The Bottom Line

A lofty price target and strong analyst ratings aren’t guarantees of immediate gains. HubSpot’s stock might face more volatility in the near term, but for aggressive, long-term investors, this pullback is a golden opportunity. Alphabet’s decision not to acquire HubSpot doesn’t reflect on the company's value. It simply wasn’t the right fit for Alphabet, but it could be the perfect addition to your growth portfolio.

So, if you can stomach the ups and downs, consider adding HubSpot to your investment basket. You might just find that this 31% discount turns into your best buy yet.

Final Thoughts

In summary, HubSpot’s recent dip presents a unique opportunity for growth investors willing to weather some short-term volatility. Its strong growth prospects, impressive analyst ratings, and Alphabet’s initial interest all point to a stock with significant potential.

What do you think? Are you ready to take advantage of this discounted growth stock? How do you feel about investing in tech companies during market dips?

If you found this analysis helpful, why not put your newfound knowledge into action? Consider adding HubSpot to your watchlist or portfolio, and keep an eye on its performance.

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