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Is Powell Industries (POWL) Stock Undervalued Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Powell Industries (POWL - Free Report) . POWL is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 15.47. This compares to its industry's average Forward P/E of 22.43. POWL's Forward P/E has been as high as 23.19 and as low as 15.24, with a median of 16.88, all within the past year.
We also note that POWL holds a PEG ratio of 1.10. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. POWL's industry currently sports an average PEG of 1.99. Within the past year, POWL's PEG has been as high as 1.66 and as low as 1.09, with a median of 1.21.
Investors should also recognize that POWL has a P/B ratio of 2.81. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.08. Within the past 52 weeks, POWL's P/B has been as high as 3.30 and as low as 1.51, with a median of 2.36.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. POWL has a P/S ratio of 1.34. This compares to its industry's average P/S of 2.53.
Value investors will likely look at more than just these metrics, but the above data helps show that Powell Industries is likely undervalued currently. And when considering the strength of its earnings outlook, POWL sticks out at as one of the market's strongest value stocks.
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Is Powell Industries (POWL) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Powell Industries (POWL - Free Report) . POWL is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 15.47. This compares to its industry's average Forward P/E of 22.43. POWL's Forward P/E has been as high as 23.19 and as low as 15.24, with a median of 16.88, all within the past year.
We also note that POWL holds a PEG ratio of 1.10. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. POWL's industry currently sports an average PEG of 1.99. Within the past year, POWL's PEG has been as high as 1.66 and as low as 1.09, with a median of 1.21.
Investors should also recognize that POWL has a P/B ratio of 2.81. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.08. Within the past 52 weeks, POWL's P/B has been as high as 3.30 and as low as 1.51, with a median of 2.36.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. POWL has a P/S ratio of 1.34. This compares to its industry's average P/S of 2.53.
Value investors will likely look at more than just these metrics, but the above data helps show that Powell Industries is likely undervalued currently. And when considering the strength of its earnings outlook, POWL sticks out at as one of the market's strongest value stocks.