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Powell Industries (POWL) Rises Higher Than Market: Key Facts

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Powell Industries (POWL - Free Report) closed at $332.66 in the latest trading session, marking a +1.19% move from the prior day. This change outpaced the S&P 500's 0.88% gain on the day. Meanwhile, the Dow gained 0.38%, and the Nasdaq, a tech-heavy index, added 1.31%.

Shares of the energy equipment company witnessed a gain of 11.69% over the previous month, beating the performance of the Industrial Products sector with its gain of 3.72%, and the S&P 500's gain of 2.48%.

The investment community will be paying close attention to the earnings performance of Powell Industries in its upcoming release. The company is forecasted to report an EPS of $2.85, showcasing a 0.35% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $257.47 million, showing a 6.64% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $15.27 per share and a revenue of $1.18 billion, representing changes of +2.76% and +6.63%, respectively, from the prior year.

Investors should also pay attention to any latest changes in 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.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.18% higher. Powell Industries is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note Powell Industries's current valuation metrics, including its Forward P/E ratio of 21.54. This signifies a discount in comparison to the average Forward P/E of 24.82 for its industry.

We can also see that POWL currently has a PEG ratio of 1.54. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Manufacturing - Electronics stocks are, on average, holding a PEG ratio of 2.01 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 53, placing it within the top 22% 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.

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


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