For those looking to find strong Industrial Products stocks, it is prudent to search for companies in the group that are outperforming their peers. Powell Industries (POWL) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Industrial Products peers, we might be able to answer that question.
Powell Industries is one of 187 individual stocks in the Industrial Products sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Powell Industries is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for POWL's full-year earnings has moved 2.4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, POWL has gained about 51.8% so far this year. In comparison, Industrial Products companies have returned an average of 7.1%. This shows that Powell Industries is outperforming its peers so far this year.
One other Industrial Products stock that has outperformed the sector so far this year is Proto Labs (PRLB). The stock is up 35.7% year-to-date.
In Proto Labs' case, the consensus EPS estimate for the current year increased 6.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Powell Industries belongs to the Manufacturing - Electronics industry, which includes 15 individual stocks and currently sits at #54 in the Zacks Industry Rank. Stocks in this group have gained about 2% so far this year, so POWL is performing better this group in terms of year-to-date returns.
Proto Labs, however, belongs to the Rubber - Plastics industry. Currently, this 3-stock industry is ranked #38. The industry has moved +4.2% so far this year.
Powell Industries and Proto Labs could continue their solid performance, so investors interested in Industrial Products stocks should continue to pay close attention to these stocks.
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Powell Industries, Inc. (POWL): Free Stock Analysis Report Proto Labs, Inc. (PRLB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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