Is It Time To Consider Buying Hubbell Incorporated (NYSE:HUBB)?

Let's talk about the popular Hubbell Incorporated (NYSE:HUBB). The company's shares received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$413 at one point, and dropping to the lows of US$356. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Hubbell's current trading price of US$367 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Hubbell’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for Hubbell

What Is Hubbell Worth?

Hubbell appears to be overvalued by 37% at the moment, based on our discounted cash flow valuation. The stock is currently priced at US$367 on the market compared to our intrinsic value of $267.09. This means that the opportunity to buy Hubbell at a good price has disappeared! Another thing to keep in mind is that Hubbell’s share price is quite stable relative to the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.

Can we expect growth from Hubbell?

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. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Hubbell's earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? It seems like the market has well and truly priced in HUBB’s positive outlook, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe HUBB should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping an eye on HUBB for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the optimistic prospect is encouraging for HUBB, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. For example - Hubbell has 2 warning signs 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.

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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.

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