HubSpot (HUBS) is a volatile stock enjoying strong growth momentum in the SaaS space. Demand for marketing and automation solutions in the United States and globally, coupled with HubSpot's thought leadership, will continue to propel sales momentum in the near term. Due to the improving profit margin, it will be tough to pass on HubSpot at its current valuation. At a P/S of 11X, HubSpot is not cheap. Regardless, I'll be a buyer if shares fall to $130 (forward P/S of 7x).

Demand for CRM tools is now primarily driven by SaaS and cloud deployments. HubSpot plays in the marketing subsegment of the CRM market, which represents 25% of the overall market. It is also the fastest-growing segment expanding by 18.8% y/y.

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