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Are Investors Undervaluing Powell Industries (POWL) Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Powell Industries (POWL - Free Report) . POWL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 16.66, while its industry has an average P/E of 25.38. Over the past year, POWL's Forward P/E has been as high as 24.80 and as low as 14.65, with a median of 18.11.
Investors should also note that POWL holds a PEG ratio of 1.19. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. POWL's PEG compares to its industry's average PEG of 2.18. Within the past year, POWL's PEG has been as high as 1.77 and as low as 1.05, with a median of 1.29.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. POWL has a P/S ratio of 1.96. This compares to its industry's average P/S of 2.63.
These are just a handful of the figures considered in Powell Industries's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that POWL is an impressive value stock right now.
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Are Investors Undervaluing Powell Industries (POWL) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Powell Industries (POWL - Free Report) . POWL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 16.66, while its industry has an average P/E of 25.38. Over the past year, POWL's Forward P/E has been as high as 24.80 and as low as 14.65, with a median of 18.11.
Investors should also note that POWL holds a PEG ratio of 1.19. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. POWL's PEG compares to its industry's average PEG of 2.18. Within the past year, POWL's PEG has been as high as 1.77 and as low as 1.05, with a median of 1.29.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. POWL has a P/S ratio of 1.96. This compares to its industry's average P/S of 2.63.
These are just a handful of the figures considered in Powell Industries's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that POWL is an impressive value stock right now.