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Valued at a market cap of $21.7 billion, Hubbell Incorporated (HUBB) designs, manufactures, and sells electrical and utility solutions to commercial, industrial, utility, and telecommunications markets. Based in Shelton, Connecticut, the company's products include plugs, receptacles, connectors, lighting fixtures, high voltage test and measurement equipment, and voice and data signal processing components.
Companies worth more than $10 billion are generally labeled as “large-cap” stocks, and Hubbell fits this criterion perfectly. The company distinguishes itself as a leading manufacturer of electrical and utility solutions and is renowned for building reliable, resilient, and renewable energy infrastructure.
Despite a 4.8% decline from its 52-week high of $429.61 reached on Apr. 4, shares of this electrical equipment manufacturer have gained 9.1% over the past three months, surpassing The Industrial Select Sector SPDR Fund’s (XLI) 8.3% return over the same time frame.
In the longer term, HUBB stock is up 24.3% on a YTD basis, surpassing XLI’s 15.1% gains. Shares of HUBB have gained 29.4% over the past 52 weeks, compared to XLI’s nearly 25% returns over the same time frame.
To confirm its bullish trend, HUBB has been trading above its 200-day moving average since November last year and has remained above its 50-day moving average since August despite few fluctuations.
Despite missing revenue estimates, shares of HUBB rose 3.5% following its Q2 earnings release on Jul. 30 due to raised full-year 2024 guidance backed by expected improvement in organic growth coupled with the company’s ability to capitalize on opportunities in grid modernization and electrification. Furthermore, HUBB’s adjusted earnings of $4.37 per share surpassed estimates due to significant growth in its Electrical Solutions segment and expansion in adjusted operating margin.
HUBB has outpaced its rival, EnerSys’ (ENS) marginal decline on a YTD basis and 3.6% gain over the past 52 weeks.
Despite HUBB outperforming the broader sector, analysts remain cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from 10 analysts' coverage, and the mean price target of $415.12 suggests a premium of just 1.5% to its current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
