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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
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.
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 12.8X, as well as a PEG Ratio of 0.9, a Price/Cash Flow ratio of 13.5X, and a Price/Sales ratio of 2X.
Many value investors pay close attention to a company's earnings as well. For POWL, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $13.71 per share for 2025. Per share POWL boasts an average earnings surprise of 33.3%.
POWL should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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Powell Industries, Inc. (POWL) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).