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Powell Industries (POWL) Declines More Than Market: Some Information for Investors

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Powell Industries (POWL - Free Report) closed the latest trading day at $153.95, indicating a -1.92% change from the previous session's end. The stock fell short of the S&P 500, which registered a loss of 0.16% for the day. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, lost 0.18%.

Prior to today's trading, shares of the energy equipment company had lost 15.03% over the past month. This has lagged the Industrial Products sector's loss of 5.09% and the S&P 500's gain of 3.15% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Powell Industries in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.12, showcasing a 39.47% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $217.37 million, indicating a 13% upward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.04 per share and a revenue of $888.12 million, indicating changes of +119.42% and +27%, respectively, from the former year.

Any recent changes to analyst estimates for Powell Industries should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, there's been no change in the Zacks Consensus EPS estimate. At present, Powell Industries boasts a Zacks Rank of #1 (Strong Buy).

With respect to valuation, Powell Industries is currently being traded at a Forward P/E ratio of 17.36. Its industry sports an average Forward P/E of 22.61, so one might conclude that Powell Industries is trading at a discount comparatively.

It is also worth noting that POWL currently has a PEG ratio of 1.24. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Manufacturing - Electronics was holding an average PEG ratio of 1.9 at yesterday's closing price.

The Manufacturing - Electronics industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 17, placing it within the top 7% of over 250 industries.

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

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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