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Powell Industries (POWL) Exceeds Market Returns: Some Facts to Consider

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Powell Industries (POWL) closed the latest trading day at $186.92, indicating a +1.4% change from the previous session's end. The stock's change was more than the S&P 500's daily gain of 0.74%. On the other hand, the Dow registered a gain of 0.05%, and the technology-centric Nasdaq increased by 1.26%.

The energy equipment company's shares have seen an increase of 1.89% over the last month, surpassing the Industrial Products sector's loss of 6.87% and the S&P 500's loss of 4.77%.

Analysts and investors alike will be keeping a close eye on the performance of Powell Industries in its upcoming earnings disclosure. The company's earnings report is set to go public on May 6, 2025. In that report, analysts expect Powell Industries to post earnings of $3.34 per share. This would mark year-over-year growth of 21.45%. Simultaneously, our latest consensus estimate expects the revenue to be $277.33 million, showing an 8.71% escalation compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $13.71 per share and a revenue of $1.11 billion, indicating changes of +11.55% and +9.6%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for Powell Industries. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Powell Industries is currently trading at a Forward P/E ratio of 13.45. This expresses a discount compared to the average Forward P/E of 19.95 of its industry.

Meanwhile, POWL's PEG ratio is currently 0.96. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Manufacturing - Electronics stocks are, on average, holding a PEG ratio of 1.71 based on yesterday's closing prices.