Powell Industries (POWL) ended the recent trading session at $332.87, demonstrating a -4.44% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.53%. At the same time, the Dow lost 0.71%, and the tech-heavy Nasdaq lost 0.93%.
The energy equipment company's stock has climbed by 19.2% in the past month, exceeding the Industrial Products sector's gain of 1.64% and the S&P 500's gain of 1.13%.
The investment community will be paying close attention to the earnings performance of Powell Industries in its upcoming release. The company's upcoming EPS is projected at $3.76, signifying a 0.27% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $292.85 million, indicating a 6.47% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $14.39 per share and revenue of $1.1 billion, indicating changes of +17.09% and 0%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Powell Industries. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.27% higher. Powell Industries is currently a Zacks Rank #2 (Buy).
In the context of valuation, Powell Industries is at present trading with a Forward P/E ratio of 23.32. This signifies a discount in comparison to the average Forward P/E of 24.34 for its industry.
Also, we should mention that POWL has a PEG ratio of 1.67. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Manufacturing - Electronics industry stood at 1.97 at the close of the market yesterday.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 66, putting it in the top 27% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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Powell Industries, Inc. (POWL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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