Powell Industries (POWL) Outperforms Broader Market: What You Need to Know

Powell Industries (POWL) closed at $286.36 in the latest trading session, marking a +1.87% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.79%. Meanwhile, the Dow gained 0.26%, and the Nasdaq, a tech-heavy index, added 1.52%.

Heading into today, shares of the energy equipment company had lost 2.44% over the past month, lagging the Industrial Products sector's gain of 8.84% and the S&P 500's loss of 1.82%.

Market participants will be closely following the financial results of Powell Industries in its upcoming release. The company's upcoming EPS is projected at $1.49, signifying a 12.88% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $318.25 million, indicating a 11.17% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $5.47 per share and a revenue of $1.2 billion, demonstrating changes of +10.51% and +8.73%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Powell Industries. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Powell Industries currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Powell Industries is holding a Forward P/E ratio of 51.39. This valuation marks a premium compared to its industry average Forward P/E of 23.02.

We can additionally observe that POWL currently boasts a PEG ratio of 3.67. 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. Manufacturing - Electronics stocks are, on average, holding a PEG ratio of 1.8 based on yesterday's closing prices.

Story Continues

The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 82, this industry ranks in the top 34% of all industries, numbering over 250.

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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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Powell Industries, Inc. (POWL) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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