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Powell Industries (POWL) Exceeds Market Returns: Some Facts to Consider

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Powell Industries (POWL - Free Report) closed at $240.16 in the latest trading session, marking a +2.22% move from the prior day. This change outpaced the S&P 500's 0.07% gain on the day. Elsewhere, the Dow saw a downswing of 0.7%, while the tech-heavy Nasdaq appreciated by 0.18%.

Heading into today, shares of the energy equipment company had gained 23.49% over the past month, outpacing the Industrial Products sector's gain of 8.77% and the S&P 500's gain of 5.71%.

Market participants will be closely following the financial results of Powell Industries in its upcoming release. The company plans to announce its earnings on August 5, 2025. 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%. Alongside, our most recent consensus estimate is anticipating revenue of $295.12 million, indicating a 2.41% upward movement from the same quarter last year.

POWL's full-year Zacks Consensus Estimates are calling for earnings of $14.17 per share and revenue of $1.11 billion. These results would represent year-over-year changes of +15.3% and +9.82%, respectively.

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. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Powell Industries is holding a Zacks Rank of #3 (Hold) right now.

In the context of valuation, Powell Industries is at present trading with a Forward P/E ratio of 16.58. This represents a discount compared to its industry average Forward P/E of 24.46.

We can additionally observe that POWL currently boasts a PEG ratio of 1.18. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Manufacturing - Electronics stocks are, on average, holding a PEG ratio of 2.02 based on yesterday's closing prices.

The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 24, finds itself in the top 10% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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