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Hubbell (HUBB) Moves 4.9% Higher: Will This Strength Last?

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Hubbell Incorporated (HUBB - Free Report) shares rallied 4.9% in the last trading session to close at $196.61. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 4.1% gain over the past four weeks.

Hubbell’s rally is largely driven by optimism over the company’s solid momentum in its business, backed by improvement in demand across its end markets.  Rising orders across its segments, along with its pricing and productivity actions, are likely to be beneficial in the quarters ahead.

This electrical products manufacturer is expected to post quarterly earnings of $2.15 per share in its upcoming report, which represents a year-over-year change of +15%. Revenues are expected to be $1.17 billion, up 23% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Hubbell, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on HUBB going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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