In the latest close session, Powell Industries (POWL) was down 1.5% at $421.85. This change lagged the S&P 500's 1.16% gain on the day. Meanwhile, the Dow experienced a rise of 1.21%, and the technology-dominated Nasdaq saw an increase of 1.18%.
The energy equipment company's shares have seen an increase of 26.47% over the last month, surpassing the Industrial Products sector's gain of 6.02% and the S&P 500's loss of 0.42%.
The investment community will be paying close attention to the earnings performance of Powell Industries in its upcoming release. The company is slated to reveal its earnings on February 3, 2026. The company's upcoming EPS is projected at $2.85, signifying a 0.35% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $257.47 million, indicating a 6.64% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $15.27 per share and revenue of $1.18 billion, indicating changes of +2.76% and +6.63%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Powell Industries. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Powell Industries possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Powell Industries is currently trading at a Forward P/E ratio of 28.06. This denotes a premium relative to the industry average Forward P/E of 22.78.
One should further note that POWL currently holds a PEG ratio of 2. 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 Manufacturing - Electronics industry currently had an average PEG ratio of 1.86 as of yesterday's close.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 41% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Powell Industries, Inc. (POWL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
