5 Best Tech Growth Stocks to Buy Right Now

1. HubSpot, Inc. (NYSE: HUBS)

P/E Ratio: 518

The growth of the Internet provides traditional advertisers with a far greater medium to reach their potential customers. HubSpot is one such company that seeks to connect advertisers to their customers. It was founded in 2006 and provides a wide array of services to customers that include advanced data analytics, search engine optimization, and marketing tools.

HubSpot’s shares are one of the biggest growth stories out there, especially for the industry in which it operates. The company’s shares closed at $88.4 in 2017 and its closing price on Thursday, August 26 2021, was $684 making for a staggering 677% growth in three years. HubSpot reported $1.32 in non-GAAP EPS at the end of its previous fiscal year and a GAAP EPS loss. Based on its share price and the non-GAAP EPS, its P/E ratio is 518.

n the Q2 2021 investor letter of Alger, the fund mentioned HubSpot, Inc. (NYSE: HUBS). Here is what the fund said:

“HubSpot provides a cloud-based marketing and sales software platform that enables small and mid-size businesses (SMB) to attract new potential customers, convert them to paying customers and retain them. HubSpot targets its services to companies with 10 to 2,000 employees and seeks to attract visitors to its clients’ digital content through inbound marketing techniques. It then seeks to convert visitors into leads, close leads into customers, and improve engagement and customer services. The stock outperformed during the second quarter after the company reported accelerating growth momentum at scale during the first three months of this year. The headwinds HubSpot experienced during the pandemic created a setup for the company to emerge from the crisis in a much stronger strategic position than before. Management raised fiscal year 2021 revenue guidance by $77 million, a 6.5% increase, after just one quarter into the fiscal year, implying accelerating growth into the rest of the year. We believe HubSpot currently has potential to revise upward annual revenue guidance throughout the year. In addition, the company has been expanding its services and has moved from simply helping small businesses grow better to providing what we believe is the best-of-breed customer relationship and customer experience platform for companies interested in building scale.”

You can also take a peek at the 10 Stocks that Crushed Earnings Expectations and 10 Must-Watch Earnings Reports.

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