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Powell Industries (POWL) Laps the Stock Market: Here's Why

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In the latest market close, Powell Industries (POWL - Free Report) reached $176.16, with a +1.74% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 0.23%. Elsewhere, the Dow lost 0.17%, while the tech-heavy Nasdaq added 0.34%.

Heading into today, shares of the energy equipment company had gained 3.52% over the past month, outpacing the Industrial Products sector's loss of 3.86% and lagging the S&P 500's gain of 3.96% in that time.

Investors will be eagerly watching for the performance of Powell Industries in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.12, marking a 39.47% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $217.37 million, reflecting a 13% rise from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.04 per share and revenue of $888.12 million. These totals would mark changes of +119.42% and +27%, respectively, from last year.

Investors should also note any recent changes 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Powell Industries is carrying a Zacks Rank of #1 (Strong Buy).

With respect to valuation, Powell Industries is currently being traded at a Forward P/E ratio of 19.15. This expresses a discount compared to the average Forward P/E of 22.57 of its industry.

Meanwhile, POWL's PEG ratio is currently 1.37. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Manufacturing - Electronics was holding an average PEG ratio of 1.91 at yesterday's closing price.

The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 16, this industry ranks in the top 7% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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