Powell Industries (POWL) Stock Falls Amid Market Uptick: What Investors Need to Know

Zacks
01-31

In the latest trading session, Powell Industries (POWL) closed at $236.37, marking a -1.72% move from the previous day. This change lagged the S&P 500's 0.53% gain on the day. At the same time, the Dow added 0.38%, and the tech-heavy Nasdaq gained 0.25%.

Shares of the energy equipment company have appreciated by 8.5% over the course of the past month, outperforming the Industrial Products sector's gain of 2.99% and the S&P 500's gain of 1.24%.

Investors will be eagerly watching for the performance of Powell Industries in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 6, 2025. The company's upcoming EPS is projected at $2.83, signifying a 42.93% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $244.17 million, up 25.85% from the prior-year quarter.

POWL's full-year Zacks Consensus Estimates are calling for earnings of $13.70 per share and revenue of $1.11 billion. These results would represent year-over-year changes of +11.47% and +9.33%, respectively.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Powell Industries. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. At present, Powell Industries boasts a Zacks Rank of #4 (Sell).

Investors should also note Powell Industries's current valuation metrics, including its Forward P/E ratio of 17.56. For comparison, its industry has an average Forward P/E of 22.48, which means Powell Industries is trading at a discount to the group.

We can additionally observe that POWL currently boasts a PEG ratio of 1.25. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. POWL's industry had an average PEG ratio of 1.81 as of yesterday's close.

The Manufacturing - Electronics industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 182, placing it within the bottom 28% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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