Hubbell (HUBB) Gains But Lags Market: What You Should Know
Hubbell (HUBB) closed the most recent trading day at $317.91, moving +0.57% from the previous trading session. This move lagged the S&P 500's daily gain of 0.59%. At the same time, the Dow added 0.35%, and the tech-heavy Nasdaq gained 0.83%.
Coming into today, shares of the electrical products manufacturer had lost 3.26% in the past month. In that same time, the Industrial Products sector lost 2.72%, while the S&P 500 lost 2.84%.
Hubbell will be looking to display strength as it nears its next earnings release. On that day, Hubbell is projected to report earnings of $4.01 per share, which would represent year-over-year growth of 30.19%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.41 billion, up 7.45% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $15.32 per share and revenue of $5.4 billion, which would represent changes of +44.26% and +9.21%, respectively, from the prior 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Hubbell is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Hubbell is holding a Forward P/E ratio of 20.64. Its industry sports an average Forward P/E of 20.64, 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 2.06. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. HUBB's industry had an average PEG ratio of 2.06 as of yesterday's close.
The Manufacturing - Electrical Utilities industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 5, which puts it in the top 2% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Hubbell Inc (HUBB) : Free Stock Analysis Report
