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Based in Shelton, Connecticut, Hubbell Incorporated (HUBB) designs, manufactures, and sells electrical and utility solutions. Valued at a market cap of $20.7 billion, the company’s products include plugs, receptacles, connectors, lighting fixtures, high voltage tests, measurement equipment, and voice and data signal processing components.
Shares of this electronic company have underperformed the broader market over the past 52 weeks. HUBB has gained 18.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 27.4%. In 2024, shares of HUBB are up 16.6%, compared to SPX’s 17.6% gain on a YTD basis.
Zooming in further, HUBB’s underperformance is also evident when compared to the Invesco Dorsey Wright Industrials Momentum ETF’s (PRN) 36.6% gains over the past 52 weeks and 19.9% return on a YTD basis.
Shares of HUBB gained 3.5% on Jul. 30 following its Q2 earnings release. The company reported adjusted earnings of $4.37, beating Wall Street’s forecast of $4.23. On the other hand, the company’s revenue stood at $1.45 billion, missing Wall Street estimates of $1.49 billion. HUBB expects full-year earnings in the range of $16.20 to $16.50 per share.
For the current fiscal year, ending in December, analysts expect HUBB’s EPS to grow 6.9% year over year to $16.39. The company’s earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing on one occasion.
Among the nine analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on four “Strong Buy” ratings and five “Holds.”
On Aug. 2, Stephens maintained an “Overweight” rating on Hubbell and raised the price target to $450 - the Street-high price target, which implies a potential upside of 16.8% from the current price levels. The mean price target of $414.86 represents a premium of 7.7% to HUBB’s current levels.
On the date of publication, Rashmi Kumari 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.
