We recently published a list of the 11 Most Promising Long-Term Stocks According to Analysts. In this article, we are going to take a look at where HubSpot, Inc. (NYSE:HUBS) stands against other promising long-term stocks.
On March 31, Banrion’s Shana Sissel recently appeared on CNBC’s ‘Power Lunch’ to discuss that buying at lower valuations is favorable for long-term investors. Shana Sissel highlighted that the markets now want transparency, given the persistent volatility that has lasted for a while now. When this clarity is lacking, it becomes difficult for investors and businesses to plan for the long term. This uncertainty has led to soft consumer and CEO confidence, which makes it challenging to develop long-term strategies when key aspects such as industrial policy, business policy, and taxes remain unresolved in the US. Sissel emphasized that until there is more certainty, volatility is likely to persist. She expressed skepticism that any immediate announcements would provide the level of information investors desire, especially because of the administration’s habit of making statements that are later contradicted or revised. However, Sissel pointed out that long-term investors can find attractive buying opportunities if they look beyond the current uncertainty. She noted that the recent drop in valuations for many tech stocks now presents favorable buying opportunities for long-term investors.
Regardless of the short-term fluctuations in policy uncertainty, many tech and security companies still benefit from long-term demand due to trends like the ongoing adoption of AI and the growing need for cybersecurity and infrastructure protection. Even when government decisions are unclear, these sectors are resilient because their products and services address fundamental needs that are unlikely to change with fluctuating market cycles.
Our Methodology
We first sifted through the Finviz stock screener and financial media reports to compile a list of the top stocks with high upside potential of over 40%. We then selected 11 stocks with a 10-year revenue compound annual growth rate of over 20%. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q4 2024, which was sourced from Insider Monkey’s database.
Note: All data was sourced on April 21.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A team of software developers gathered around a monitor discussing a new CRM platform.
HubSpot, Inc. (NYSE:HUBS)
10-Year Revenue CAGR: 36.63%
Number of Hedge Fund Holders: 73
Average Upside Potential as of April 21: 50.36%
HubSpot, Inc. (NYSE:HUBS) provides a cloud-based CRM platform for businesses in the Americas, Europe, and the Asia Pacific. This CRM platform includes Marketing Hub, Sales Hub, Service Hub, Content Hub, Operations Hub, and Commerce Hub. It also provides professional services to educate and train customers on how to utilize its CRM platform.
The company has an AI-first approach. This is exemplified by the Content Hub, which is its AI-driven hub that became the fastest-growing one in 2024. For 2025, the company is positioning itself as the leading AI-first customer platform. The roll-out of Breeze Intelligence highlights HubSpot, Inc.’s (NYSE:HUBS) focus on AI. This is a competitively-priced product that integrates GenAI and data offerings, and reached 75,000+ weekly active users in Q4 2024.
On March 19, Bernstein initiated coverage on the stock with a $693 price target and a Market Perform rating because of the company’s innovations in AI-driven automation. HubSpot, Inc.’s (NYSE:HUBS) AI agent ecosystem includes platforms like Agent.AI. This platform helps consolidate structured and unstructured data for AI agents. In just 6 months, the user base for Agent.AI increased 10x from 50,000 to ~500,000.
TimesSquare Capital Management U.S. Focus Growth Strategy stated the following regarding HubSpot, Inc. (NYSE:HUBS) in its Q4 2024 investor letter:
“Among the wide variety of Information Technology companies, we prefer critical system providers, specialized component designers, systems that improve productivity or efficiency for their clients, and others that are growing their shares of corporate IT budgets. Another addition to the sector was HubSpot, Inc. (NYSE:HUBS), a cloud-based customer relationship management platform provider. Its execution has been stellar, with a best-in-class software product driven by a robust innovation engine, a unified underlying data architecture platform, and a focus on the small-to-mid business market where we see high potential for productivity improvements from Generative AI innovation, They subsequently reported a strong third quarter earnings report was highlighted by billings growth and the new business backlog has accelerated. HubSpot added 10,000 net new customers in the quarter.”
Overall, HUBS ranks 9th on our list of the 11 most promising long-term stocks according to analysts. While we acknowledge the potential of HUBS as an investment, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than HUBS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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