Powell Industries (POWL) Ascends But Remains Behind Market: Some Facts to Note

By Zacks Equity Research | May 02, 2025, 5:45 PM

The most recent trading session ended with Powell Industries (POWL) standing at $193.23, reflecting a +1.1% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 1.47%. At the same time, the Dow added 1.39%, and the tech-heavy Nasdaq gained 1.51%.

Shares of the energy equipment company have appreciated by 12.52% over the course of the past month, outperforming the Industrial Products sector's loss of 1.14% and the S&P 500's loss of 0.47%.

The upcoming earnings release of Powell Industries will be of great interest to investors. The company's earnings report is expected on May 6, 2025. It is anticipated that the company will report an EPS of $3.34, marking a 21.45% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $277.33 million, up 8.71% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $13.71 per share and a revenue of $1.11 billion, demonstrating changes of +11.55% and +9.6%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Powell Industries. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Powell Industries is currently a Zacks Rank #3 (Hold).

In the context of valuation, Powell Industries is at present trading with a Forward P/E ratio of 13.95. Its industry sports an average Forward P/E of 19.95, so one might conclude that Powell Industries is trading at a discount comparatively.

It's also important to note that POWL currently trades at a PEG ratio of 1. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Manufacturing - Electronics industry held an average PEG ratio of 1.75.

The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 44, putting it in the top 18% 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.

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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