Hubbell Outperforms On Margins, But Growth Is Going To Slow

As a later-cycle play, Hubbell (HUBB) shares have done only so-so in the market since my last update, underperforming the broader industrial category, as well as other electrical product companies like Schneider (OTCPK:SBGSY) and nVent (NVT), but doing comparatively better than Eaton (ETN), Acuity (AYI), and ABB (ABB) over that time. While Hubbell does seem a little ahead of pace on margin improvement, and I believe management's outlook for market growth as 2019 rolls in is quite realistic, slowing growth in future quarters may limit some of the share price potential.

I don't prefer Hubbell to Schneider or Eaton, but the shares do seem undervalued at a time when many industrials seem richly valued. While I think Hubbell's lower growth profile and still-not-so-impressive margins may remain an issue for the share price performance, I do still see some value here at a time when that's harder to find in industrials and the market in general.

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Hubbell Outperforms On Margins, But Growth Is Going To Slow