Powell Industries (POWL) closed the most recent trading day at $291.50, moving -5.3% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 1.44%. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq lost 2.22%.
Shares of the energy equipment company witnessed a gain of 10.24% over the previous month, beating the performance of the Industrial Products sector with its gain of 9.25%, and the S&P 500's gain of 0.08%.
Investors will be eagerly watching for the performance of Powell Industries in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.49, showcasing a 12.88% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $318.25 million, indicating a 11.17% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.47 per share and a revenue of $1.2 billion, indicating changes of +10.51% and +8.73%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Powell Industries. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Powell Industries is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Powell Industries is holding a Forward P/E ratio of 56.27. This denotes a premium relative to the industry average Forward P/E of 23.32.
We can additionally observe that POWL currently boasts a PEG ratio of 4.02. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Manufacturing - Electronics industry had an average PEG ratio of 1.85.
The Manufacturing - Electronics industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 95, placing it within the top 39% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Powell Industries, Inc. (POWL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).