10 Undervalued Stocks to Invest in According to Goldman Sachs

8. Hubbell Incorporated (NYSE:HUBB)

Forward P/E ratio: 17.91

Number of Hedge Fund Holders: 38

Hubbell Incorporated (NYSE:HUBB) is a manufacturer of electrical and utility solutions for industrial, commercial, and residential applications. The company operates through two primary segments: Electrical Solutions, which provides wiring devices, lighting fixtures, enclosures, and controls for buildings and industrial systems, and Utility Solutions, which supplies electrical infrastructure products such as transformers, insulators, and grid automation systems to electric utilities. HUBB serves a wide range of markets, including construction, energy, transportation, and telecommunications, supporting critical infrastructure development and modernization. Its products enhance electrical safety, reliability, and efficiency across North America and select international markets.

The utility demand of Hubbell Incorporated (NYSE:HUBB)  has shown positive momentum with book-to-bill going above 1 for the first time in approximately 7 quarters, indicating a significant trend reversal. While end demand remained strong with continued material installation, utilities had been satisfying their needs through inventory rather than new orders over the past 1.5 years. The destocking trend is expected to fade throughout 2025, with shipments aligning more closely with installation rates. In the electrical segment, demand has remained steady, particularly in light industrial applications, though commercial segments show modest performance. The company’s data center business operates in two distinct areas: balance-of-system products and modular solutions through PCX, with both segments projected to grow in the mid-teens for 2025.

Regarding pricing strategy, Hubbell Incorporated (NYSE:HUBB) has maintained strong pricing power, with distributors being supportive of price increases. The company’s financial model is generating increased cash flow, enabling expanded capital expenditure and creating opportunities for strategic acquisitions. Management anticipates having over $2 billion in disposable cash for investment over the next 3-4 years, aiming to add approximately 2.5-3 points to top-line growth through programmatic acquisitions. With a forward P/E ratio of 17.91, HUBB is one of Goldman Sachs’s undervalued stocks.