Hubbell (HUBB) Increases Yet Falls Behind Market: What Investors Need to Know

In the latest market close, Hubbell (HUBB) reached $417.08, with a +1.1% movement compared to the previous day. This change lagged the S&P 500's 1.11% gain on the day. On the other hand, the Dow registered a gain of 0.8%, and the technology-centric Nasdaq increased by 1.24%.

The electrical products manufacturer's shares have seen an increase of 4.99% over the last month, surpassing the Industrial Products sector's gain of 4.27% and the S&P 500's gain of 0.48%.

The investment community will be closely monitoring the performance of Hubbell in its forthcoming earnings report. In that report, analysts expect Hubbell to post earnings of $3.54 per share. This would mark a year-over-year decline of 1.94%. Alongside, our most recent consensus estimate is anticipating revenue of $1.39 billion, indicating an 8.46% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $16.43 per share and revenue of $5.86 billion, which would represent changes of +7.18% and +9%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Hubbell. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.18% upward. Hubbell is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, Hubbell is currently trading at a Forward P/E ratio of 25.11. This signifies no noticeable deviation in comparison to the average Forward P/E of 25.11 for its industry.

It is also worth noting that HUBB currently has a PEG ratio of 2.51. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Manufacturing - Electrical Utilities industry currently had an average PEG ratio of 2.51 as of yesterday's close.

The Manufacturing - Electrical Utilities industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 2, positioning it in the top 1% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow HUBB in the coming trading sessions, be sure to utilize Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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