Powell Industries (POWL) ended the recent trading session at $150.99, demonstrating a -11.35% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 1.21% for the day. Elsewhere, the Dow gained 0.02%, while the tech-heavy Nasdaq lost 2.6%.
Heading into today, shares of the energy equipment company had lost 11.58% over the past month, lagging the Industrial Products sector's loss of 2.24% and the S&P 500's loss of 0.03%.
The investment community will be paying close attention to the earnings performance of Powell Industries in its upcoming release. The company is expected to report EPS of $1.52, up 7.8% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $328.35 million, showing a 10.19% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.36 per share and revenue of $1.19 billion, which would represent changes of +8.28% and +7.57%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Powell Industries. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Powell Industries is carrying a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Powell Industries has a Forward P/E ratio of 24.79 right now. This indicates a premium in contrast to its industry's Forward P/E of 22.51.
We can also see that POWL currently has a PEG ratio of 1.77. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Manufacturing - Electronics industry was having an average PEG ratio of 1.56.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 91, finds itself in the top 37% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Powell Industries, Inc. (POWL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).