Powell Industries (POWL) closed the most recent trading day at $236.58, moving +2.04% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.81%. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 1.3%.
The stock of energy equipment company has fallen by 11.62% in the past month, lagging the Industrial Products sector's gain of 0.86% and the S&P 500's gain of 1.13%.
Market participants will be closely following the financial results of Powell Industries in its upcoming release. The company's upcoming EPS is projected at $1.49, signifying a 12.88% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $318.25 million, showing a 11.17% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.47 per share and revenue of $1.2 billion. These totals would mark changes of +10.51% and +8.73%, respectively, from last year.
Any recent changes to analyst estimates for Powell Industries should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Powell Industries holds a Zacks Rank of #4 (Sell).
In terms of valuation, Powell Industries is currently trading at a Forward P/E ratio of 42.39. This represents a premium compared to its industry average Forward P/E of 22.4.
Also, we should mention that POWL has a PEG ratio of 3.03. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Manufacturing - Electronics stocks are, on average, holding a PEG ratio of 1.67 based on yesterday's closing prices.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Powell Industries, Inc. (POWL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).