In This Article:
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
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 sits at a Zacks Rank #3 (Hold), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Manufacturing - Electronics industry's P/E of 22.5X, shares of Powell Industries are trading at a forward P/E of 12.7X. POWL also has a PEG Ratio of 0.9, a Price/Cash Flow ratio of 13.3X, 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%.
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
This article originally published on Zacks Investment Research (zacks.com).