On Tuesday Hubbell reported outstanding earnings. And on Wednesday its stock soared 12.7% to a fresh all-time high. As a result, its Relative Strength (RS) Rating on Wednesday shot up to a lofty 92, out of a best-possible 99.
Hubbell Stock Breaks Out; Profits Soared 70%
Hubbell doesn't see glowing galaxies far, far away like the similar-named telescope. But Hubbell the electrical systems supplier does shine brightly. On Tuesday, Hubbell reported a 70% leap in EPS growth, on a year-over-year basis, to $3.61, easily topping estimates. Sales grew 11% to $1.29 billion.
The upgraded 92 RS Rating puts Hubbell stock in the top 8% of all stocks for price performance over the past 12 months. Market history shows that stocks that go on to make the biggest gains tend to have an RS Rating of at least 80 in the early stages of their moves.
The IBD 50 stock also sports an excellent 93 Earnings Per Share Rating, out of 99. Add to that a parallel 93 Composite Rating and B- Accumulation/Distribution Rating.
The Composite Rating combines five separate proprietary IBD ratings, based on key fundamental and technical criteria, into one easy-to-use score. The best growth stocks have a Composite Rating of 90 or better. The Accumulation/Distribution Rating tracks institutional buying (accumulation) and selling (distribution) in a particular stock over the last 13 weeks.
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Hubbell makes power transmissions systems for industrial, construction and other industries. Hubbell stock broke out earlier, but has fallen back below the prior 263.40 entry from a consolidation. It's important to know that the most recent pattern is a later-stage base, which can succeed. But it makes it riskier to establish a new position or add shares to an existing one than an early-stage base.
Hubbell stock holds the No. 5 rank among its peers in the Electrical Power/Equipment industry group. Allied Motion and ABB are among the top 5 highly rated stocks in the group.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength. IBD's proprietary Relative Strength Rating identifies market leadership by showing how a stock's price action over the last 52 weeks measures up against that of the other stocks in our database.
