What happened 

Shares in electrical and utility solutions provider Hubbell (HUBB 0.38%) rose 15.3% over the week through late Thursday afternoon. The move came after a well-received set of earnings released on Tuesday.

Having disposed of its commercial and industrial lighting business last year, Hubbell is now focused on electrical products used to operate critical infrastructure. As such, it's a play on the transmission and distribution of energy (known as Front of the Meter), the connection of utilities with operators so energy and data are transferred (Edge), and where owners/operators (residential, nonresidential, and industrial customers) use the energy (Behind the Meter).

They are attractive markets to be in as grid modernization and smart grid investments drive growth, while the connection of renewable energy to the grid remains a growth area. 

An electrical grid concept.

Image source: Getty Images.

So what

These strong underlying trends led to Hubbell's organic sales growing 10% in the first quarter, and management significantly hiked its full-year guidance. The new guidance calls for full-year organic sales growth of 7% to 9% compared to a previous range of 4% to 6%. Earnings guidance was hiked too, with adjusted EPS now forecast in the range of $13 to $13.5 compared to a previous range of $11 to $11.50. 

Now what

The electrification and grid modernization theme remains an excellent investment in 2023. As such, it's no surprise that other leading companies in the field have had such strong years. 

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Despite the slowing economy, there are pockets of tremendous growth. The long-term trend of electrification and the need to modernize grid infrastructure is a secular growth trend likely to continue through 2023.