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Shelton, Connecticut-based Hubbell Incorporated (HUBB) designs, manufactures and sells electrical and electronic products to commercial, industrial, utility, and telecommunications markets. With a market cap of $24.7 billion, Hubbell operates through Electrical Solutions and Utility Solutions segments.
Hubbell has substantially outperformed the broader market over the past year. HUBB stock has soared 40.1% on a YTD basis and 53.7% over the 52 weeks, outpacing the S&P 500 Index’s ($SPX) surge of 25.2% in 2024 and 31% over the past year.
Narrowing the focus, HUBB has also outperformed the Industrial Select Sector SPDR Fund’s (XLI) 25.1% gains on a YTD basis and 34.5% returns over the past 52-week period.
Hubbell stock dropped 2.1% after the release of its Q3 earnings on Oct. 29 as the company’s net sales fell below Wall Street’s topline estimates by a notable 2.6%. Although its overall net sales grew by 4.9% year-over-year to $1.4 billion, its organic sales declined by approximately 1% and the sales growth was completely driven by acquisitions.
Nevertheless, Hubbell’s overall performance remained robust and observed substantial improvement in profitability, the company reported 180 basis points adjusted operating margin expansion to 23.2% and a staggering 13.6% year-over-year growth in operating income to $334.8 million. Moreover, its adjusted EPS of $4.49 surpassed analysts’ bottom-line estimates.
For the current fiscal year, ending in December, analysts expect HUBB to report a 7.4% year-over-year growth in adjusted EPS to $16.47. Moreover, the company has a robust earnings surprise history. It has surpassed analysts’ bottom-line estimates in the past four quarters.
HUBB stock has a consensus “Moderate Buy” rating overall. Among the 11 analysts covering the stock, five recommend “Strong Buy” and six advise a “Hold” rating.
This configuration is slightly more bullish than a month ago when four analysts recommended “Strong Buy” ratings.
On Nov. 5, Bernstein analyst Chad Dillard initiated coverage with an “Outperform” rating and a price target of $535 – the Street-high price target, indicating a 16.1% upside potential. Meanwhile, HUBB’s mean price target of $473.22 represents a 2.7% premium to current price levels.
