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With a market cap of around $20 billion, Hubbell Incorporated (HUBB) is a leading designer, manufacturer, and seller of electrical and utility solutions for commercial, industrial, and utility markets. Based in Shelton, Connecticut, the company operates through its Electrical Solutions and Utility Solutions segments, offering a diverse portfolio of products, including wiring devices, lighting fixtures, utility infrastructure, and smart grid solutions.
Shares of the electrical products manufacturer have lagged behind the broader market over the past 52 weeks. HUBB has risen 1.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 17%. In addition, shares of HUBB are down 11.1% on a YTD basis, compared to SPX’s 1.3% gain over the same period.
Focusing more closely, Hubbell has underperformed the Industrial Select Sector SPDR Fund’s (XLI) 12.2% return over the past 52 weeks.
Despite reporting a better-than-expected Q4 2024 adjusted EPS of $4.10, shares of Hubbell fell 1.9% on Feb. 4 due to weaker-than-expected revenue of $1.3 billion, which declined about 1% year-over-year and missed analyst estimates. The company's Electrical Solutions segment saw an 8% sales decline due to a divestiture, contributing to an overall segment revenue drop to $487 million. Additionally, while the Utility Solutions segment grew 4% to $847 million, organic net sales actually declined 5%, with Grid Automation net sales falling 11%, raising concerns over demand softness.
For the current fiscal year, ending in December 2025, analysts expect HUBB’s EPS to grow 6.4% year-over-year to $17.63. The company's earnings surprise history is promising. It topped the consensus estimates in the last four quarters.
Among the 11 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on four “Strong Buy” ratings and seven “Holds.”
On Feb. 5, J.P. Morgan analyst Stephen Tusa reiterated a “Hold” rating on Hubbell and set a price target of $430.
As of writing, HUBB is trading below the mean price target of $472.56. The Street-high price target of $535 implies a potential upside of 43.7% from the current price levels.
