United Technologies Corporation (UTX), Hubbell Incorporated (HUB.B): One Trend Driving These Two Construction-Friendly Companies

Hubbell Incorporated (NYSE:HUB.B) has gained a sales boost by acquiring other companies, including two electrical businesses purchased during the first half of this year. According to the company’s earnings release, sales should rise in the 4% to 6% range this year.

Last quarter’s earnings give a glimpse into what the various end markets the company serves look like. Hubbell Incorporated (NYSE:HUB.B) is seeing improved demand for lighting products, while industrial demand has slumped a bit. Most notably, it is experiencing strength in the residential construction and commercial renovation markets.

This means that commercial construction growth is not a factor in Hubbell Incorporated (NYSE:HUB.B)‘s earnings growth at this time. But it could soon be another catalyst helping to boost Hubbell Incorporated (NYSE:HUB.B)‘s results, making this an even better stock.

Conclusion
United Technologies Corporation (NYSE:UTX) might grow along with rising commercial construction metrics. But if you want focused commercial building exposure and a solid earnings outlook, Hubbell Incorporated (NYSE:HUB.B) could make an even better choice.

The article 1 Trend Driving These 2 Construction-Friendly Companies originally appeared on Fool.com and is written by Damon Churchwell.

Damon Churchwell has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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