Hubbell Incorporated (HUBB): A Bull Case Theory 

We came across a bullish thesis on Hubbell Incorporated on Quality Value Investing’s Substack by David J. Waldron. In this article, we will summarize the bulls’ thesis on HUBB. Hubbell Incorporated’s share was trading at $427.85 as of December 1st. HUBB’s trailing and forward P/E were 26.76 and 21.93 respectively according to Yahoo Finance.

Hubbell Incorporated (HUBB) is a dividend-paying industrial conglomerate specializing in electrical and utility solutions across the U.S. and internationally. Operating through its Electrical and Utility Solutions segments, the company maintains a diverse brand portfolio including Hubbell, Burndy, Bell, and Aclara. Founded in 1888 and headquartered in Connecticut, Hubbell was added to QVI Real-Time Stock Picks in November 2023 at a cost basis of $273.07 per share.

Morningstar assigns Hubbell a wide moat, citing its ability to consistently generate mid-teens returns on invested capital across two decades and its resilience through past economic crises. Its competitive margin profile and durable market position alongside peers such as Eaton and Schneider Electric support this moat. QVI views Hubbell as a high-quality infrastructure play benefiting from the modernization of the aging U.S. electrical grid and maintains a bullish value proposition rating.

Financially, Hubbell’s five-year annualized revenue growth was in the mid-single digits, trailing the S&P 500, while its 1% recent revenue growth lagged the broader market’s 18.2%. Despite this, the company delivered mid-double-digit profit margins, and its return on equity exceeded QVI’s benchmark though below the S&P 500’s 49.2%.

With a new $500 million buyback authorization through 2028 and $225 million repurchased in 1H25, management continues disciplined capital allocation. Hubbell’s ROIC also surpassed its cost of capital, underscoring efficient deployment. Over five years, owners’ earnings grew at a high double-digit rate, supported by strong EPS and dividend growth, reaffirming management quality and robust fundamentals. QVI’s business fundamentals rating for Hubbell is bullish.

Previously we covered a bullish thesis on Hubbell Incorporated (HUBB) by Stock Analysis Compilation in December 2024, which highlighted its leadership in electrical products and strong positioning for U.S. grid modernization. The stock has depreciated by about 8.40% since our coverage as the thesis has yet to play out. The thesis remains valid with continued infrastructure tailwinds. David J. Waldron shares a similar but more fundamental view.

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Disclosure: None.