Powell Industries (POWL) closed at $173.22 in the latest trading session, marking a +0.15% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 1.81%. Elsewhere, the Dow saw an upswing of 1.56%, while the tech-heavy Nasdaq appreciated by 2.06%.
The energy equipment company's shares have seen an increase of 3.77% over the last month, surpassing the Industrial Products sector's loss of 11.25% and the S&P 500's loss of 6.14%.
Market participants will be closely following the financial results 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%. At the same time, our most recent consensus estimate is projecting a revenue of $277.33 million, reflecting an 8.71% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $13.71 per share and revenue of $1.11 billion, indicating changes of +11.55% and +9.6%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Powell Industries. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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 past month, the Zacks Consensus EPS estimate has remained steady. Right now, Powell Industries possesses a Zacks Rank of #3 (Hold).
Digging into valuation, Powell Industries currently has a Forward P/E ratio of 12.62. Its industry sports an average Forward P/E of 17.74, so one might conclude that Powell Industries is trading at a discount comparatively.
We can additionally observe that POWL currently boasts a PEG ratio of 0.9. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Manufacturing - Electronics industry had an average PEG ratio of 1.65.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 37, finds itself in the top 15% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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