In the latest trading session, Powell Industries (POWL) closed at $361.74, marking a +2.62% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.64%. Meanwhile, the Dow experienced a rise of 1.23%, and the technology-dominated Nasdaq saw an increase of 0.69%.
The energy equipment company's shares have seen an increase of 3.04% over the last month, surpassing the Industrial Products sector's gain of 1.92% and the S&P 500's gain of 0.55%.
The upcoming earnings release of Powell Industries will be of great interest to investors. The company is predicted to post an EPS of $2.85, indicating a 0.35% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $257.47 million, reflecting a 6.64% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $15.27 per share and revenue of $1.18 billion. These totals would mark changes of +2.76% and +6.63%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Powell Industries. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Powell Industries is currently a Zacks Rank #2 (Buy).
Investors should also note Powell Industries's current valuation metrics, including its Forward P/E ratio of 23.09. This expresses a premium compared to the average Forward P/E of 21.38 of its industry.
It is also worth noting that POWL currently has a PEG ratio of 1.65. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Manufacturing - Electronics industry held an average PEG ratio of 1.72.
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 15% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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