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Powell Industries (POWL) Beats Stock Market Upswing: What Investors Need to Know

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In the latest trading session, Powell Industries (POWL - Free Report) closed at $180.52, marking a +2.91% move from the previous day. This move outpaced the S&P 500's daily gain of 0.96%. Elsewhere, the Dow gained 0.89%, while the tech-heavy Nasdaq added 0.94%.

The energy equipment company's stock has climbed by 0.41% in the past month, falling short of the Industrial Products sector's gain of 2.02% and the S&P 500's gain of 0.5%.

The upcoming earnings release of Powell Industries will be of great interest to investors. On that day, Powell Industries is projected to report earnings of $3.73 per share, which would represent a year-over-year decline of 1.58%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $295.12 million, up 2.41% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $14.17 per share and revenue of $1.11 billion, indicating changes of +15.3% and +9.82%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for Powell Industries. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Powell Industries holds a Zacks Rank of #3 (Hold).

In terms of valuation, Powell Industries is presently being traded at a Forward P/E ratio of 12.38. This represents a discount compared to its industry average Forward P/E of 21.39.

Investors should also note that POWL has a PEG ratio of 0.88 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Manufacturing - Electronics industry held an average PEG ratio of 1.81.

The Manufacturing - Electronics industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 44, placing it within the top 18% of over 250 industries.

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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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