U.S. Markets open in 1 hr 43 mins
  • S&P Futures

    4,541.50
    +17.25 (+0.38%)
     
  • Dow Futures

    35,036.00
    +126.00 (+0.36%)
     
  • Nasdaq Futures

    15,137.00
    +103.50 (+0.69%)
     
  • Russell 2000 Futures

    2,066.90
    +7.70 (+0.37%)
     
  • Crude Oil

    86.50
    -0.46 (-0.53%)
     
  • Gold

    1,838.50
    -4.70 (-0.25%)
     
  • Silver

    24.20
    -0.03 (-0.11%)
     
  • EUR/USD

    1.1342
    -0.0005 (-0.0454%)
     
  • 10-Yr Bond

    1.8270
    0.0000 (0.00%)
     
  • Vix

    23.07
    +0.28 (+1.23%)
     
  • GBP/USD

    1.3615
    +0.0003 (+0.0232%)
     
  • USD/JPY

    114.2610
    -0.0920 (-0.0804%)
     
  • BTC-USD

    41,980.21
    -53.91 (-0.13%)
     
  • CMC Crypto 200

    996.94
    +2.19 (+0.22%)
     
  • FTSE 100

    7,584.36
    -5.30 (-0.07%)
     
  • Nikkei 225

    27,772.93
    +305.70 (+1.11%)
     

Is Now An Opportune Moment To Examine Hubbell Incorporated (NYSE:HUBB)?

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Today we're going to take a look at the well-established Hubbell Incorporated (NYSE:HUBB). The company's stock saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let’s take a look at Hubbell’s outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for Hubbell

What is Hubbell worth?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 1.5% below my intrinsic value, which means if you buy Hubbell today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth $212.06, then there isn’t much room for the share price grow beyond what it’s currently trading. Is there another opportunity to buy low in the future? Since Hubbell’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What kind of growth will Hubbell generate?

earnings-and-revenue-growth
earnings-and-revenue-growth

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Hubbell's earnings over the next few years are expected to increase by 31%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? HUBB’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on HUBB, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you want to dive deeper into Hubbell, you'd also look into what risks it is currently facing. For example - Hubbell has 1 warning sign we think you should be aware of.

If you are no longer interested in Hubbell, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.