Hubbell Incorporated (NYSE:HUBB) is one of the stocks on Jim Cramer’s radar. A caller asked if the stock is currently a buy, hold, or sell, and mentioned the company’s recent appointment of a new CFO. In response, Cramer said:
“I just want to stay long. No need to buy it up here because this thing has been such a rocket ship. We have to wait for it to come down a little. But yeah, Hubbell remains just a fantastic American industrial company.”
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Hubbell Incorporated (NYSE:HUBB) designs, manufactures, and sells a wide range of electrical products, including wiring devices, lighting fixtures, industrial controls, and communication systems, as well as electrical distribution and utility infrastructure products like arresters, insulators, and smart meters. Heartland Advisors stated the following regarding Hubbell Incorporated (NYSE:HUBB) in its second quarter 2025 investor letter:
“Industrials. A new Quality Value position initiated during the quarter was Hubbell Incorporated (NYSE:HUBB , a leading electrical component manufacturer. Over the past decade, Hubbell implemented self-help actions to shift its portfolio away from traditional commercial construction end markets and toward the power grid/utility end market, which now represents more than two-thirds of sales, thereby reducing exposure to construction spending cycles. At the same time, Hubbell has simplified its product offerings and consolidated 15% of its footprint, rationalizing underutilized assets and creating flexible capacity for faster-growing markets.
During the pandemic-related supply chain disruptions, many of Hubbell’s utility customers over ordered products to ensure availability in the field. By 2024, as lead times normalized, destocking efforts accelerated and organic revenue turned negative. The stock came under further pressure in early 2025, as investor sentiment toward power generation demand took a hit.
As a result, the stock is now attractively priced in our opinion. After trading at a median 15% premium to its peers over the past 5 years and a 5% premium over the past decade, HUBB fell to a 10% discount in April and is now roughly in line with other Industrial companies on an EV/EBITDA basis. We also expect the company to benefit from continued demand for transmission and distribution infrastructure owing to the country’s aged electrical grid, and Q1-25 earnings confirmed our view that customer destocking has generally ceased.”
While we acknowledge the risk and potential of HUBB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HUBB and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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