Powell Industries (POWL) Registers a Bigger Fall Than the Market: Important Facts to Note

Powell Industries (POWL) ended the recent trading session at $515.20, demonstrating a -2.71% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.08%. Elsewhere, the Dow lost 0.61%, while the tech-heavy Nasdaq added 0.08%.

Shares of the energy equipment company witnessed a loss of 7.14% over the previous month, trailing the performance of the Industrial Products sector with its loss of 6.04%, and the S&P 500's loss of 2.16%.

Market participants will be closely following the financial results of Powell Industries in its upcoming release. The company is predicted to post an EPS of $3.7, indicating a 2.89% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $295.84 million, indicating a 6.18% increase compared to the same quarter of the previous year.

POWL's full-year Zacks Consensus Estimates are calling for earnings of $15.97 per share and revenue of $1.18 billion. These results would represent year-over-year changes of +7.47% and +6.63%, respectively.

Investors might also notice recent changes to analyst estimates for Powell Industries. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Powell Industries is holding a Zacks Rank of #2 (Buy) right now.

Valuation is also important, so investors should note that Powell Industries has a Forward P/E ratio of 33.15 right now. This denotes a premium relative to the industry average Forward P/E of 25.25.

We can also see that POWL currently has a PEG ratio of 2.37. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. POWL's industry had an average PEG ratio of 1.9 as of yesterday's close.

The Manufacturing - Electronics industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 69, positioning it in the top 29% of all 250+ industries.

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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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Powell Industries, Inc. (POWL): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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