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Shelton, Connecticut-based Hubbell Incorporated (HUBB) designs, manufactures, and sells electrical and utility solutions to commercial, industrial, utility, and telecommunications markets. Valued at a market cap of $17.9 billion, the company’s products include plugs, receptacles, connectors, lighting fixtures, high-voltage test and measurement equipment, and voice and data signal processing components.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and HUBB fits the label perfectly, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the electrical equipment & parts industry. The company’s focus on innovation, including smart grid technologies and energy-efficient lighting, keeps it competitive in a rapidly evolving market. With resilient demand driven by electrification, automation, and infrastructure investments, Hubbell benefits from strong government spending on infrastructure and clean energy.
Despite its notable strength, this electronic company has slipped 30.8% from its 52-week high of $481.35, reached on Nov. 6, 2024. Moreover, it has declined 20.5% over the past three months, underperforming the broader S&P 500 Index’s ($SPX) 4.2% downtick over the same time frame.
In the longer term, HUBB has fallen 20.1% over the past 52 weeks, considerably lagging behind SPX’s 7.4% gain over the same time frame. Moreover, on a six-month basis, shares of HUBB are down 22.1%, compared to SPX’s 1.3% loss.
To confirm its bearish trend, HUBB has been trading below its 200-day moving average since early February, and has remained below its 50-day moving average since mid-December, 2024, with a minor fluctuation.
On Feb. 4, shares of HUBB plunged 1.9% following its mixed Q4 earnings release. The company’s adjusted earnings grew 11.1% year-over-year to $4.10 per share and exceeded Wall Street’s expectations of $4.02. Strong operational execution led to significant margin expansion, contributing to the earnings beat. However, its revenue slightly declined from the prior-year's quarter to $1.3 billion, missing analyst expectations. Adding to the downtick, both its reportable segments experienced negative organic growth, raising demand concerns. Despite these challenges, Hubbell remains optimistic for 2025, projecting total sales and organic sales growth of 4% to 5%, with adjusted EPS expected between $17.35 and $17.85.
To emphasize the stock’s underperformance, HUBB has lagged behind its rival, EnerSys’ (ENS) marginal decline over the past 52 weeks and a 7.2% fall on a six-month basis.
Despite HUBB’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 11 analysts covering it, and the mean price target of $459.22 suggests a massive 38% premium to its current levels.
