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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Is This 1 Momentum Stock a Screaming Buy Right Now?
Different than value or growth investors, momentum-oriented investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
Powell Industries (POWL)
Headquartered in Houston, TX, Powell engages in manufacturing and supplying custom-engineered equipment and systems that are used for distributing, controlling and monitoring the flow of electrical energy. Founded in 1947, the company has 2,748 employees (as of Sept. 30, 2024).The company primarily sells products like integrated power control room substations, electrical houses, medium-voltage circuit breakers, monitoring and control communications systems, switches, motor control centers, bus duct systems, arc-resistant distribution switchgears and control gears. Some of these are used to offer protection to transformers, motors and other electrically powered equipment.
POWL boasts a Momentum Style Score of A and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Shares of Powell Industries has seen some interesting price action recently; the stock is down 2.1% over the past one week and up 9.3% over the past four weeks. And in the last one-year period, POWL has gained 17.1%. As for the stock's trading volume, 282,523.59 shares on average were traded over the last 20 days.
Momentum investors don't just pay attention to price changes; positive earnings play a crucial role, too. Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.46 to $14.17 per share. POWL boasts an average earnings surprise of 25.5%.
POWL should be on investors' short list because of its impressive earnings fundamentals, a good Zacks Rank, and strong Momentum and VGM Style Scores.
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