Powell Industries (POWL) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Powell Industries (POWL) closed the most recent trading day at $228.25, moving -3.49% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.01%. Elsewhere, the Dow saw a downswing of 0.32%, while the tech-heavy Nasdaq appreciated by 0.05%.
The energy equipment company's stock has climbed by 32.18% in the past month, exceeding the Industrial Products sector's gain of 8.33% and the S&P 500's gain of 5.37%.
Investors will be eagerly watching for the performance of Powell Industries in its upcoming earnings disclosure. The company is expected to report EPS of $3.73, down 1.58% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $295.12 million, indicating a 2.41% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $14.17 per share and a revenue of $1.11 billion, indicating changes of +15.3% and +9.82%, respectively, from the former year.
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. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Powell Industries is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Powell Industries has a Forward P/E ratio of 16.69 right now. This expresses a discount compared to the average Forward P/E of 24.05 of its industry.
It is also worth noting that POWL currently has a PEG ratio of 1.19. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Manufacturing - Electronics industry was having an average PEG ratio of 2.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 36, which puts it in the top 15% of all 250+ industries.
Story ContinuesThe Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Powell Industries, Inc. (POWL) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Despite Powell Industries' (POWL) recent decline surpassing that of the broader market, investors should note its strong fundamental outlook and history of recovering from similar downturns in previous years.
