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Powell Industries (POWL) Stock Sinks As Market Gains: Here's Why
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Powell Industries (POWL - Free Report) closed the most recent trading day at $307.77, moving -2.98% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.06%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, added 0.39%.
Heading into today, shares of the energy equipment company had gained 23.36% over the past month, outpacing the Industrial Products sector's gain of 1.09% and the S&P 500's gain of 3.94%.
Market participants will be closely following the financial results of Powell Industries in its upcoming release. The company is expected to report EPS of $3.76, down 0.27% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $292.85 million, showing a 6.47% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $14.39 per share and revenue of $1.1 billion, which would represent changes of +17.09% and 0%, respectively, from the prior 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 business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Powell Industries presently features a Zacks Rank of #2 (Buy).
From a valuation perspective, Powell Industries is currently exchanging hands at a Forward P/E ratio of 21.29. This indicates a discount in contrast to its industry's Forward P/E of 23.89.
Also, we should mention that POWL has a PEG ratio of 1.52. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Manufacturing - Electronics stocks are, on average, holding a PEG ratio of 1.92 based on yesterday's closing prices.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 143, which puts it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Powell Industries (POWL) Stock Sinks As Market Gains: Here's Why
Powell Industries (POWL - Free Report) closed the most recent trading day at $307.77, moving -2.98% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.06%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, added 0.39%.
Heading into today, shares of the energy equipment company had gained 23.36% over the past month, outpacing the Industrial Products sector's gain of 1.09% and the S&P 500's gain of 3.94%.
Market participants will be closely following the financial results of Powell Industries in its upcoming release. The company is expected to report EPS of $3.76, down 0.27% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $292.85 million, showing a 6.47% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $14.39 per share and revenue of $1.1 billion, which would represent changes of +17.09% and 0%, respectively, from the prior 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 business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Powell Industries presently features a Zacks Rank of #2 (Buy).
From a valuation perspective, Powell Industries is currently exchanging hands at a Forward P/E ratio of 21.29. This indicates a discount in contrast to its industry's Forward P/E of 23.89.
Also, we should mention that POWL has a PEG ratio of 1.52. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Manufacturing - Electronics stocks are, on average, holding a PEG ratio of 1.92 based on yesterday's closing prices.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 143, which puts it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.