Hubbell (NYSE:HUBB) on Monday rose as much as 1.8% to hit a record high of $258.12 a share, a sign that investors are optimistic about demand for utility and electrical products. The stock has risen as much as 52% since hitting a 52-week low of $170.12 a share in late June.
Efforts to modernize the electrical grid and expand the range of electric products, such as cars and trucks, received support from the Inflation Reduction Act that President Biden signed in August. The law includes billions of dollars in incentives to buy energy-efficient products.
Hubbell (HUBB) last month reported that its sales had climbed more than 20% from a earlier to $1.32 billion in Q3. Its adjusted earnings of $3.08 a share beat analyst estimates of $2.71 a share.
Company management raised its full-year estimate for adjusted earnings to a range of $10.25 to $10.45 a share from the prior guidance of $9.40 to $9.80 a share.
“We are well positioned in attractive markets that are supported by long-term trends in grid modernization and electrification, which continue to drive strong demand for our products,” Gerben Bakker, chairman, president and CEO of Hubbell (HUBB), said during the company’s earnings call with analysts. “Utility customers are proactively replacing aging infrastructure while investing significantly to upgrade, harden and modernize the grid.”
Hubbell (HUBB) this year has risen 22%, contrasting with a 16% decline for the Standard & Poor’s 500 index (SP500).
Seeking Alpha contributor Jay Capital rates Hubbell (HUBB) as a Sell because of its valuation.