Powell Industries (POWL) closed the latest trading day at $181.51, indicating a +0.01% change from the previous session's end. This change lagged the S&P 500's 1.08% gain on the day. On the other hand, the Dow registered a gain of 0.92%, and the technology-centric Nasdaq increased by 1.41%.
Heading into today, shares of the energy equipment company had lost 12.98% over the past month, lagging the Industrial Products sector's loss of 6.99% and the S&P 500's loss of 8.26% in that time.
The investment community will be paying close attention to the earnings performance of Powell Industries in its upcoming release. On that day, Powell Industries is projected to report earnings of $3.34 per share, which would represent year-over-year growth of 21.45%. Meanwhile, the latest consensus estimate predicts the revenue to be $277.33 million, indicating an 8.71% increase compared to the same quarter of the previous year.
POWL's full-year Zacks Consensus Estimates are calling for earnings of $13.71 per share and revenue of $1.11 billion. These results would represent year-over-year changes of +11.55% and +9.6%, respectively.
Investors should also pay attention to any latest changes in 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.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 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 past month, the Zacks Consensus EPS estimate has remained steady. Powell Industries is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Powell Industries is currently being traded at a Forward P/E ratio of 13.24. This denotes a discount relative to the industry's average Forward P/E of 23.66.
Also, we should mention that POWL has a PEG ratio of 0.95. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Manufacturing - Electronics industry had an average PEG ratio of 1.9 as trading concluded yesterday.
The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 35, this industry ranks in the top 14% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
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