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Hubbell Incorporated (NYSE:HUBB) saw a decent share price growth in the teens level on the NYSE over the last few months. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. 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.
Check out our latest analysis for Hubbell
What Is Hubbell Worth?
According to my valuation model, Hubbell seems to be fairly priced at around 16% below my intrinsic value, which means if you buy Hubbell today, you’d be paying a reasonable price for it. And if you believe the company’s true value is $390.15, then there’s not much of an upside to gain from mispricing. In addition to this, Hubbell has a low beta, which suggests its share price is less volatile than the wider market.
What kind of growth will Hubbell generate?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. With profit expected to grow by 43% over the next couple of years, the future seems bright for Hubbell. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
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 financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor? If you’ve been keeping tabs on HUBB, now may not be the most optimal 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 further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Diving deeper into the forecasts for Hubbell mentioned earlier will help you understand how analysts view the stock going forward. So feel free to check out our free graph representing analyst forecasts.