In the latest close session, Powell Industries (POWL) was up +2.7% at $384.26. The stock outperformed the S&P 500, which registered a daily gain of 0.23%. At the same time, the Dow added 0.34%, and the tech-heavy Nasdaq gained 0.8%.
Shares of the energy equipment company witnessed a gain of 23.47% over the previous month, beating the performance of the Industrial Products sector with its gain of 3.22%, and the S&P 500's gain of 3.57%.
Market participants will be closely following the financial results of Powell Industries in its upcoming release. It is anticipated that the company will report an EPS of $3.76, marking a 0.27% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $292.85 million, indicating a 6.47% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $14.39 per share and a revenue of $1.1 billion, signifying shifts of +17.09% and 0%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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 business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the past month, there's been a 0.27% rise in the Zacks Consensus EPS estimate. Currently, Powell Industries is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Powell Industries is currently trading at a Forward P/E ratio of 25.04. This expresses a premium compared to the average Forward P/E of 25.03 of its industry.
We can also see that POWL currently has a PEG ratio of 1.79. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Manufacturing - Electronics was holding an average PEG ratio of 2.01 at yesterday's closing price.
The Manufacturing - Electronics industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 64, positioning it in the top 26% of all 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.
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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Powell Industries, Inc. (POWL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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