Back to top

Image: Bigstock

Powell Industries (POWL) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

Powell Industries (POWL - Free Report) closed at $405.55 in the latest trading session, marking a +1.07% move from the prior day. This move outpaced the S&P 500's daily gain of 0.26%. At the same time, the Dow added 0.6%, and the tech-heavy Nasdaq gained 0.25%.

Shares of the energy equipment company have appreciated by 26.46% over the course of the past month, outperforming the Industrial Products sector's gain of 5.14%, and the S&P 500's gain of 1.57%.

The investment community will be closely monitoring the performance of Powell Industries in its forthcoming earnings report. In that report, analysts expect Powell Industries to post earnings of $2.85 per share. This would mark a year-over-year decline of 0.35%. Meanwhile, the latest consensus estimate predicts the revenue to be $257.47 million, indicating a 6.64% increase compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $15.27 per share and a revenue of $1.18 billion, indicating changes of +2.76% and +6.63%, respectively, from the former year.

Any recent changes to analyst estimates for Powell Industries should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

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, 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Powell Industries currently has a Zacks Rank of #2 (Buy).

In terms of valuation, Powell Industries is presently being traded at a Forward P/E ratio of 26.29. Its industry sports an average Forward P/E of 23.42, so one might conclude that Powell Industries is trading at a premium comparatively.

We can additionally observe that POWL currently boasts a PEG ratio of 1.88. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Manufacturing - Electronics was holding an average PEG ratio of 1.83 at yesterday's closing price.

The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 57, which puts it in the top 24% of all 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Powell Industries, Inc. (POWL) - free report >>

Published in