For those looking to find strong Industrial Products stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Powell Industries (POWL) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Industrial Products sector should help us answer this question.
Powell Industries is a member of the Industrial Products sector. This group includes 179 individual stocks and currently holds a Zacks Sector Rank of #9. 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 model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. 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 4.6% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, POWL has gained about 63.2% so far this year. In comparison, Industrial Products companies have returned an average of 11.3%. This means that Powell Industries is outperforming the sector as a whole this year.
Another stock in the Industrial Products sector, Watts Water (WTS), has outperformed the sector so far this year. The stock's year-to-date return is 11.9%.
Over the past three months, Watts Water's consensus EPS estimate for the current year has increased 3.3%. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Powell Industries belongs to the Manufacturing - Electronics industry, a group that includes 13 individual companies and currently sits at #68 in the Zacks Industry Rank. On average, stocks in this group have gained 10% this year, meaning that POWL is performing better in terms of year-to-date returns.
Watts Water, however, belongs to the Manufacturing - General Industrial industry. Currently, this 43-stock industry is ranked #69. The industry has moved +8.7% so far this year.
Investors interested in the Industrial Products sector may want to keep a close eye on Powell Industries and Watts Water as they attempt to continue their solid performance.
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Powell Industries, Inc. (POWL): Free Stock Analysis Report Watts Water Technologies, Inc. (WTS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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