Unlock stock picks and a broker-level newsfeed that powers Wall Street. Upgrade Now
Are You a Value Investor? This 1 Stock Could Be the Perfect Pick

In This Article:

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted 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 Value Style Score of B and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Shares of Powell Industries are trading at a forward earnings multiple of 16.1X, as well as a PEG Ratio of 1.2, a Price/Cash Flow ratio of 16.8X, and a Price/Sales ratio of 2.5X.

A company's earnings performance is important for value investors as well. For fiscal 2025, one analyst revised their earnings estimate higher in the last 60 days for POWL, while the Zacks Consensus Estimate has increased $0.01 to $13.71 per share. POWL also holds an average earnings surprise of 33.3%.

Investors should take the time to consider POWL for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

To read this article on Zacks.com click here.

Zacks Investment Research