What Makes Hubbell (HUBB) a Quality Value Position?

Soumya Eswaran

Mon, Jul 14, 2025, 7:56 AM 3 min read

Heartland Advisors, an investment management company, released its “Heartland Mid Cap Value Fund” second quarter 2025 investor letter. A copy of the letter can be downloaded here. The market rallied in the quarter, as the recession fears waned, and market sentiment shifted toward increased risk-taking. The fund lost 0.22% in the quarter compared to the 5.35% gain for the Russell Midcap® Value Index. Stock selection led to most of the underperformance of the fund in the quarter. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second quarter 2025 investor letter, Heartland Mid Cap Value Fund highlighted stocks such as Hubbell Incorporated (NYSE:HUBB). Headquartered in Shelton, Connecticut, Hubbell Incorporated (NYSE:HUBB) designs and manufactures electrical and utility solutions. The one-month return of Hubbell Incorporated (NYSE:HUBB) was 6.98%, and its shares gained 11.92% of their value over the last 52 weeks. On July 11, 2025, Hubbell Incorporated (NYSE:HUBB) stock closed at $419.24 per share with a market capitalization of $22.376 billion.

Heartland Mid Cap Value Fund stated the following regarding Hubbell Incorporated (NYSE:HUBB) in its second quarter 2025 investor letter:

"Industrials.  A new Quality Value position initiated during the quarter was Hubbell Incorporated (NYSE:HUBB , a leading electrical component manufacturer. Over the past decade, Hubbell implemented self-help actions to shift its portfolio away from traditional commercial construction end markets and toward the power grid/utility end market, which now represents more than two-thirds of sales, thereby reducing exposure to construction spending cycles. At the same time, Hubbell has simplified its product offerings and consolidated 15% of its footprint, rationalizing underutilized assets and creating flexible capacity for faster-growing markets.