Powell Industries (POWL) Increases Despite Market Slip: Here's What You Need to Know

Zacks
25 Jan

In the latest market close, Powell Industries (POWL) reached $290.80, with a +0.12% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.29%. Meanwhile, the Dow lost 0.32%, and the Nasdaq, a tech-heavy index, lost 0.5%.

Coming into today, shares of the energy equipment company had gained 25.58% in the past month. In that same time, the Industrial Products sector gained 5.98%, while the S&P 500 gained 2.52%.

The upcoming earnings release of Powell Industries will be of great interest to investors. The company's earnings report is expected on February 6, 2025. In that report, analysts expect Powell Industries to post earnings of $2.83 per share. This would mark year-over-year growth of 42.93%. Simultaneously, our latest consensus estimate expects the revenue to be $244.17 million, showing a 25.85% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $13.70 per share and revenue of $1.11 billion, which would represent changes of +11.47% and +9.33%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Powell Industries. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Powell Industries currently has a Zacks Rank of #3 (Hold).

Looking at valuation, Powell Industries is presently trading at a Forward P/E ratio of 21.21. This signifies a discount in comparison to the average Forward P/E of 22.73 for its industry.

Investors should also note that POWL has a PEG ratio of 1.51 right now. 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. By the end of yesterday's trading, the Manufacturing - Electronics industry had an average PEG ratio of 1.94.

The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 141, finds itself in the bottom 44% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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