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Powell Industries (POWL) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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Powell Industries (POWL - Free Report) ended the recent trading session at $123.44, demonstrating a -1.56% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.58%. At the same time, the Dow lost 0.12%, and the tech-heavy Nasdaq lost 1.15%.

Shares of the energy equipment company witnessed a loss of 14.02% over the previous month, trailing the performance of the Industrial Products sector with its gain of 0.09% and the S&P 500's loss of 1.09%.

The investment community will be closely monitoring the performance of Powell Industries in its forthcoming earnings report. The company is scheduled to release its earnings on April 30, 2024. The company is forecasted to report an EPS of $1.89, showcasing a 170% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $205.73 million, indicating a 20% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.54 per share and a revenue of $839.17 million, signifying shifts of +83.01% and +20%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for Powell Industries. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Powell Industries is carrying a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Powell Industries has a Forward P/E ratio of 16.63 right now. This denotes a discount relative to the industry's average Forward P/E of 20.91.

We can also see that POWL currently has 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. The Manufacturing - Electronics industry currently had an average PEG ratio of 1.95 as of yesterday's close.

The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 152, finds itself in the bottom 40% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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