Data Center Infrastructure Name Sets Up In A Base

Hubbell (HUBB) has gained around 55% and outperformed 86% of stocks over the last 12 months by helping data center infrastructures get up and running faster. That makes it Thursday’s IBD 50 Growth Stock To Watch.

The electrical parts maker’s modular solutions help keep uninterrupted power flowing to data centers, helping them run 30% faster. It’s also boosted its revenue, which Hubbell partly attributed to strong demand from its data center projects in its latest earnings release.

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Hubbell makes electrical parts used in commercial, industrial and residential applications as well as renewable energy infrastructure. Pieces include lighting solutions, smart home devices, antennas and wall plates.

It supports data center infrastructure with its cables, connections, cabinets, power solutions and racks. These components assist in the demands of artificial intelligence workloads and high-power computing.

The IBD 50 stock ranks No. 4 out of 52 names in the Electrical-Power Equipment group, which holds the 12th spot out of the 197 industry groups that Investor’s Business Daily tracks. Shares pulled back nearly 3% Thursday amid the general market drop.

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Hubbell Forms New Base

Hubbell stock is in a newly formed first-stage flat base with a 533.80 buy point, according to MarketSurge pattern recognition. The entry point is also its all-time high, reached on Feb. 12. Shares are testing their 10-week moving average.

Hubbell’s relative strength line hit a 52-week high, as shown by the blue dot on its weekly chart. It hit a 52-week low in April.

Its 1.3 up/down volume ratio shows positive demand for the stock over the last 50 days. Mutual funds own 62% of shares and have bolstered their holdings for three straight quarters, as seen on IBD Stock Checkup.

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Data Center Demand Fuels Revenue Growth

Hubbell modestly beat fourth-quarter earnings and sales estimates on Feb. 3.

“(The company’s) 9% organic sales growth was driven by strength in Electrical Solutions and Utility T&D markets as data center projects, load growth and aging infrastructure resiliency investment generated strong customer demand in front of and behind the meter,” Hubbell Chief Executive Gerben Bakker said in the company’s fourth-quarter earnings report.

Its profit growth accelerated to 15% from a drop of 1% three quarters prior. Further, its fourth-quarter net sales growth ramped up to 12% from a decrease of 2% over the same time period.

The electrical parts maker forecasts full-year 2026 sales growth between 7% and 9%. It also expects an earnings range of $19.15 to $19.85 a share for 2026.

The company has been a steady profit grower as seen in its Earnings Stability factor of 8 out of 99 — with a lower number being better. Its earnings grew an average of 9% over the last two years and analysts model the same for 2026 and 2027.

Lastly, Hubbell stock has a 98 IBD Composite Rating out of a best-possible 99.

Follow Kimberley Koenig for more stock market news on X, the platform formerly known as Twitter, @IBD_KKoenig.

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