In the latest trading session, Hubbell (HUBB) closed at $233.57, marking a +1.43% move from the previous day. This change outpaced the S&P 500’s 0.17% gain on the day. At the same time, the Dow added 0.6%, and the tech-heavy Nasdaq gained 0.67%.
Prior to today’s trading, shares of the electrical products manufacturer had lost 9.15% over the past month. This has lagged the Industrial Products sector’s loss of 5.22% and the S&P 500’s gain of 0.25% in that time.
Hubbell will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.46, up 16.04% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.25 billion, up 7.72% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.27 per share and revenue of $5.24 billion. These totals would mark changes of +6.12% and +5.83%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Hubbell. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.36% higher. Hubbell currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Hubbell has a Forward P/E ratio of 20.43 right now. Its industry sports an average Forward P/E of 20.43, so we one might conclude that Hubbell is trading at a no noticeable deviation comparatively.
Also, we should mention that HUBB has a PEG ratio of 2.04. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. Manufacturing – Electrical Utilities stocks are, on average, holding a PEG ratio of 2.04 based on yesterday’s closing prices.
The Manufacturing – Electrical Utilities industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Hubbell Inc (HUBB) : Free Stock Analysis Report
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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.
