As artificial intelligence permeates the technology sector, it's playing an integral role in customer relationship management, or CRM, software. Alongside industry leaders Salesforce.com and Adobe, CRM player HubSpot has tapped AI in an effort to supercharge productivity, and it's now seeing triple-digit growth while spurring a breakout for HUBS stock.
Efforts in AI have lifted both HubSpot and Salesforce onto the Breakout Stocks Index of Investor's Business Daily. With a 98 Composite Rating from IBD, HUBS stock also ranks No. 1 among specialty enterprise software firms.
Salesforce stock also has a 98 Composite Rating. but it is classified in the related but separate enterprise software group. Meanwhile, Adobe stock currently rates a 94.
HubSpot did not join Salesforce and Adobe on this month's list of new buys by the best mutual funds. But sparked by 130% earnings growth last quarter and Wall Street forecasts of 104% per-share earnings growth for the year, signs of institutional demand have emerged.
HubSpot sports a B Accumulation/Distribution Rating, 1.1 up/down volume ratio and three quarters of rising fund ownership. Plus, 56 funds with an A+ or A rating own shares in HUBS stock.
See Who Joins HUBS Stock And CRM On The IBD Breakout Stocks Index
HubSpot AI Fuels Productivity
HubSpot offers AI-powered engagement hubs, a "smart" CRM system, and a connected network with more than 1,500 integrations through its App Marketplace. Further, the company works to provide a unified platform for helping clients handle sales, marketing and CRM functions.
With HubSpot AI, the company helps clients to work smarter by automating tasks and uncovering actionable insights. Used for CRM, marketing, sales and more, the platform works to tap generative AI to create content, streamline workflows, enhance data analysis and more.
Earlier this year, HubSpot released a report on the State Of AI in 2023.
Showcasing the reach of AI into the CRM space, Salesforce and its AI-powered Einstein 1 platform were featured last month.
Adobe — a major CRM player with its Adobe Marketing Cloud platform — announced more than 100 new generative AI features and updates for its suite of software in October.
HUBS Stock Blasts Into Buy Range
Salesforce stock has already soared beyond buy range, while Adobe stock continues to show strength after bouncing off its 10-week moving average.
Meanwhile, HUBS stock has launched a new breakout from a double-bottom pattern as the Nasdaq keeps flying in strong volume.
Despite some selling pressure on the Nasdaq Wednesday, HubSpot remains on track for a seventh straight up day as it enters the final hour of trading. The stock has jumped past the 558.62 buy point and remains in buy range. Showing market leadership, its relative strength line has soared toward a 52-week high.
That action, along with strong earnings growth, makes HubSpot one of the top AI stocks to watch, alongside Salesforce and Adobe.
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Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
