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Hubbell (HUBB) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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Hubbell (HUBB - Free Report) closed the most recent trading day at $387.43, moving -1.45% from the previous trading session. This change lagged the S&P 500's 0.11% loss on the day. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq lost 0.41%.

Shares of the electrical products manufacturer have appreciated by 8.3% over the course of the past month, outperforming the Industrial Products sector's gain of 5.17% and the S&P 500's gain of 2.7%.

Market participants will be closely following the financial results of Hubbell in its upcoming release. The company is forecasted to report an EPS of $3.54, showcasing a 1.94% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $1.4 billion, indicating an 8.7% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $16.40 per share and a revenue of $5.87 billion, signifying shifts of +6.98% and +9.24%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for Hubbell. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.05% upward. Right now, Hubbell possesses a Zacks Rank of #3 (Hold).

From a valuation perspective, Hubbell is currently exchanging hands at a Forward P/E ratio of 23.98. This represents no noticeable deviation compared to its industry's average Forward P/E of 23.98.

It is also worth noting that HUBB currently has a PEG ratio of 2.4. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. HUBB's industry had an average PEG ratio of 2.4 as of yesterday's close.

The Manufacturing - Electrical Utilities industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 36% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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