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Powell Industries (POWL) Gains As Market Dips: What You Should Know

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In the latest trading session, Powell Industries (POWL - Free Report) closed at $255.12, marking a +0.28% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 1.86%. On the other hand, the Dow registered a loss of 0.9%, and the technology-centric Nasdaq decreased by 2.76%.

The energy equipment company's stock has climbed by 9.84% in the past month, exceeding the Industrial Products sector's loss of 0.24% and the S&P 500's gain of 1.01%.

The upcoming earnings release of Powell Industries will be of great interest to investors. It is anticipated that the company will report an EPS of $3.49, marking a 78.97% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $276.7 million, reflecting a 32.62% rise from the equivalent quarter last year.

Investors should also pay attention to any latest changes in analyst estimates for Powell Industries. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Powell Industries is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Powell Industries is holding a Forward P/E ratio of 20.45. This valuation marks a discount compared to its industry's average Forward P/E of 22.15.

Investors should also note that POWL has a PEG ratio of 1.46 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Manufacturing - Electronics industry held an average PEG ratio of 1.97.

The Manufacturing - Electronics industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 176, placing it within the bottom 31% 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.

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


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