Owning a company's stock that prices have beautifully risen five fold in the last decade without getting impacted by the Greece crisis, the pandemic crisis and you-name-it crises within the span 2014-2024 is amazing. Hubbell (HUBB, Financial) is one of the few.
The business is simple, steady and boring and that is why it's perfect: they provide electrical products and lighting which are two most essential things in this modern era for non-residential and residential construction, industrial and utility applications. They sell electrical products, electrical components, lighting fixtures and wiring devices.
Why is it boring? Because the compound annual growth rate (CAGR) of the revenue in 10 years is 5.70% per year and in 5Y it is 5.40% per year. A subtle difference means no difference and a stable business is some of us seek in the long run. And what about the Earning Before Interest? The CAGR in 10 Years is 5.90% too. When the revenue and earnings running in the same speed, that means efficiency in a glimpse.
Many will say that the growth is boring unlike those AI stocks that give the roller coaster fun to the holders. But for long term investors that seek peace of mind in investment, a stable boring company's stock is appealing.
Today, October 7th, Hubbell soars 1.77%. Well, who cares holding it for a moment when in the long run, I believe 10 years is long enough, the stock prices can grow at CAGR 18.31% a year plus 2-3% of dividend yield. Less volatile too.
Moreover some analysts predict Hubbell's EPS may grow double-digit. Peter Lynch is an investment guru that has talked about Hubbell too.
You may want to get a little or maybe much deeper about Hubbell's performance by visiting GuruFocus today!
