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Powell Industries (POWL) Suffers a Larger Drop Than the General Market: Key Insights

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Powell Industries (POWL - Free Report) ended the recent trading session at $337.07, demonstrating a -7.08% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 1.07%. On the other hand, the Dow registered a loss of 0.51%, and the technology-centric Nasdaq decreased by 1.69%.

Coming into today, shares of the energy equipment company had gained 10.52% in the past month. In that same time, the Industrial Products sector gained 4.86%, while the S&P 500 gained 0.94%.

Analysts and investors alike will be keeping a close eye on the performance of Powell Industries in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.85, signifying a 0.35% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $257.47 million, indicating a 6.64% upward movement from the same quarter last year.

POWL's full-year Zacks Consensus Estimates are calling for earnings of $15.27 per share and revenue of $1.18 billion. These results would represent year-over-year changes of +2.76% and +6.63%, respectively.

It is also important to note the recent changes to analyst estimates for Powell Industries. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.18% higher. Currently, Powell Industries is carrying a Zacks Rank of #2 (Buy).

With respect to valuation, Powell Industries is currently being traded at a Forward P/E ratio of 23.76. This signifies a discount in comparison to the average Forward P/E of 26.03 for its industry.

We can also see that POWL currently has a PEG ratio of 1.7. 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 1.97 based on yesterday's closing prices.

The Manufacturing - Electronics industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 57, placing it within the top 24% of over 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.

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


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