Hubbell (HUBB) Valuation Check After Mixed Q3: Revenue Miss, Double-Digit EPS Growth

Hubbell (HUBB) just posted third quarter revenue of $1.50 billion, up about 4% year on year, and the market is parsing a mixed message of solid earnings growth but a softer top line versus expectations.

See our latest analysis for Hubbell.

The stock has cooled off after a strong multiyear run, with a roughly flat 90 day share price return and a modest year to date gain, even though the three year total shareholder return remains very robust. This suggests momentum is pausing rather than breaking.

If this earnings update has you rethinking where growth could come from next, it might be worth exploring aerospace and defense stocks as another way to spot industrial style opportunities with different risk and demand drivers.

With shares now trading just below analyst targets after a muted year and a rare miss versus peers, is Hubbell quietly slipping into undervalued territory, or is the market already pricing in the next leg of growth?

Most Popular Narrative Narrative: 8.6% Undervalued

With Hubbell last closing at $437.71 against a narrative fair value near $479, the current setup leans toward upside if the growth path holds.

Continued investment in acquisitions and focus on market leading positions in utility and electrical markets, underpinned by secular growth trends, are expected to sustain long term revenue growth and EPS expansion.

Read the complete narrative.

Curious what powers that upside call? The narrative leans on steadily rising margins, compounding earnings, and a richer future multiple. Want the full blueprint?

Result: Fair Value of $478.67 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, that upside case could falter if inflation and tariffs squeeze margins, or if grid automation and broader demand remain weaker than expected.

Find out about the key risks to this Hubbell narrative.

Another View: DCF Flags Overvaluation Risk

While the narrative fair value suggests upside, our DCF model paints a cooler picture, putting fair value closer to $337.87, well below the current $437.71 share price. If cash flows are the anchor, is Hubbell actually priced for perfection rather than value?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Hubbell for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 914 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Hubbell Narrative

If you see Hubbell differently or want to dig into the numbers yourself, you can build a custom narrative in just a few minutes: Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Hubbell.

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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.

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