Company Performance - Powell Industries (POWL) closed at $290.80, with a slight increase of +0.12% compared to the previous day, outperforming the S&P 500, which fell by 0.29% [1] - Over the past month, shares of Powell Industries have increased by 25.58%, significantly outperforming the Industrial Products sector's gain of 5.98% and the S&P 500's gain of 2.52% [1] Upcoming Earnings - The earnings report for Powell Industries is anticipated on February 6, 2025, with expected earnings of $2.83 per share, indicating a year-over-year growth of 42.93% [2] - Revenue is projected to be $244.17 million, reflecting a 25.85% increase compared to the same quarter last year [2] Full Year Projections - For the full year, earnings are projected at $13.70 per share and revenue at $1.11 billion, representing increases of +11.47% and +9.33% respectively from the prior year [3] - Recent analyst estimate revisions suggest a positive outlook for Powell Industries, indicating optimism about the company's business trends [3] Valuation Metrics - Powell Industries is currently trading at a Forward P/E ratio of 21.21, which is lower than the industry average of 22.73 [6] - The company has a PEG ratio of 1.51, compared to the Manufacturing - Electronics industry's average PEG ratio of 1.94, suggesting a favorable valuation relative to expected earnings growth [6] Industry Context - The Manufacturing - Electronics industry, part of the Industrial Products sector, holds a Zacks Industry Rank of 141, placing it in the bottom 44% of over 250 industries [7] - Research indicates that industries in the top 50% of the Zacks Industry Rank outperform those in the bottom half by a factor of 2 to 1 [7]

HOUSTON, Jan. 23, 2025 (GLOBE NEWSWIRE) -- Powell Industries, Inc. (NASDAQ: POWL), a leading supplier of custom engineered solutions for the management, control and distribution of electrical energy, today announced that it will release results for the fiscal first quarter ended December 31, 2024 on Thursday, February 6, 2025 after the market closes. In conjunction with the release, Powell Industries has scheduled a conference call, which will be broadcast live within the Investor Relations section of the C ...

Powell Industries, Inc.  (POWL) shares have surged 89.9% in the past six months, outpacing the Industrial Products sector and the S&P 500, which have returned 5.5% and 8.2%, respectively. The company has also outshined the industry's decline of 1.7%, and its peers ESCO Technologies Inc. (ESE) and Schneider Electric S.E.'s (SBGSY) gains of 11.3% and 7.2%, respectively, over the same time frame.POWL Outperforms Industry, Sector & S&P 500 Image Source: Zacks Investment Research Closing at $261.34 in the last t ...

In the latest market close, Powell Industries (POWL) reached $261.34, with a +1.6% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily gain of 1%. Elsewhere, the Dow gained 0.78%, while the tech-heavy Nasdaq added 1.51%.Heading into today, shares of the energy equipment company had gained 5.66% over the past month, outpacing the Industrial Products sector's loss of 2.45% and the S&P 500's loss of 2.14% in that time.Analysts and investors alike will be keeping a cl ...

Industry Focus - The analyst specializes in studying businesses within the technology, industrial, and conglomerate sectors, with a preference for companies that exhibit strong foundational strength and long-term growth potential [1] Analytical Approach - The analyst employs a combination of financial analysis and narrative storytelling to provide insights into company performance and market dynamics, aiming to enhance understanding of the financial world [1] Disclosure - The analyst has no stock, option, or derivative positions in any mentioned companies and no plans to initiate such positions within the next 72 hours [2] - The article reflects the analyst's personal opinions and is not influenced by compensation or business relationships with any mentioned companies [2] - Seeking Alpha emphasizes that past performance does not guarantee future results and does not provide investment recommendations or advice [3] - Seeking Alpha analysts are third-party authors, including both professional and individual investors, who may not be licensed or certified by any regulatory body [3]

Stock Performance - Powell Industries (POWL) closed at $231 16, reflecting a +0 78% increase from the previous trading day [1] - The stock outperformed the S&P 500, which lost 1 54%, the Dow, which dropped 1 63%, and the Nasdaq, which decreased by 1 63% [1] - Over the past month, Powell Industries shares lost 10 31%, while the Industrial Products sector lost 8 55% and the S&P 500 lost 2 2% [2] Earnings and Revenue Forecast - The company is forecasted to report an EPS of $2 83, a 42 93% increase from the same quarter last year [3] - Quarterly revenue is expected to be $244 17 million, up 25 85% year-over-year [3] - For the entire fiscal year, earnings are projected at $13 70 per share, a +11 47% change, and revenue at $1 11 billion, a +9 33% change from the prior year [4] Analyst Projections and Valuation - Positive estimate revisions by analysts are seen as a good sign for the company's business outlook [5] - The Zacks Rank system, which rates stocks from 1 (Strong Buy) to 5 (Strong Sell), currently rates Powell Industries as 1 (Strong Buy) [7] - Powell Industries has a Forward P/E ratio of 16 75, below the industry average of 21 17 [8] - The company's PEG ratio is 1 2, compared to the industry average of 1 84 [8] Industry Overview - The Manufacturing - Electronics industry, part of the Industrial Products sector, has a Zacks Industry Rank of 36, placing it in the top 15% of all industries [9] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1 [9]

Stock Comparison - Powell Industries (POWL) and Kone Oyj Unsponsored ADR (KNYJY) are two stocks in the Manufacturing - Electronics sector that are being compared for value investment attractiveness [1] Valuation Metrics - POWL has a forward P/E ratio of 16.75, while KNYJY has a forward P/E of 22.99 [5] - POWL has a PEG ratio of 1.20, compared to KNYJY's PEG ratio of 3.25 [5] - POWL has a P/B ratio of 5.69, while KNYJY has a P/B ratio of 8.93 [6] Investment Grades - POWL holds a Value grade of B, while KNYJY has a Value grade of C [6] - POWL has a Zacks Rank of 1 (Strong Buy), while KNYJY has a Zacks Rank of 4 (Sell) [3] Earnings Outlook - POWL is likely seeing its earnings outlook improve to a greater extent due to positive earnings estimate revisions [3]

Company Performance - POWL's shares have surged 163.3% in the past year, significantly outperforming the industry's 14.5% growth, the broader Zacks Industrial Products sector's 9.6% growth, and the S&P 500's 27.4% growth [7] - The company has also outperformed peers like Eaton Corporation plc (ETN) and Franklin Electric Co, Inc (FELE), which gained 41.7% and 1.5%, respectively, over the same period [7] - Despite a recent 19.8% decline in share price over the past month, POWL's strong top-line growth and impressive EPS growth have maintained its competitive advantage [16][17] Financial Metrics - The Zacks Consensus Estimate for POWL's fiscal 2025 revenues is $1.1 billion, indicating 9.3% year-over-year growth, with Q1 fiscal 2025 revenues estimated at $244.2 million, reflecting 25.9% year-over-year growth [4] - Earnings estimates for fiscal 2024 have increased 10.1% to $13.70 per share, while fiscal 2025 estimates have improved 11.9% to $14.81, indicating year-over-year growth of 11.5% and 8.1%, respectively [14] - POWL's trailing 12-month ROE is 35.68%, significantly higher than the industry's 10.24%, and its return on assets is 17.35%, compared to the industry's 5.74% [11][23] Market Diversification and Growth Drivers - POWL has diversified beyond its core oil, gas, and petrochemical markets, enhancing its market share in utility, data center, commercial, and other industrial markets [3] - The company's oil and gas markets grew 23% year-over-year, while petrochemical markets surged 112% in the fiscal fourth quarter [9] - Increasing demand for electrical power from data centers and growth in energy transition projects, such as biofuels, carbon capture, and hydrogen, are key growth drivers [3][9] Expansion and Backlog - POWL is undertaking a $11 million facility expansion project at its Houston product factory, expected to be completed by mid-fiscal 2025, to support growth in data centers, hydrogen, carbon capture, and transitional energy markets [10] - The company exited the fiscal fourth quarter with a strong backlog of $1.3 billion, with new orders totaling $267 million, up from $171 million in the year-ago quarter [18] Valuation - POWL's forward 12-month price-to-earnings ratio is 16.67X, well below the industry average of 25.05X, presenting an attractive valuation for investors [20] - The stock is trading higher than its peer, EnerSys (ENS), but remains favorably valued compared to the broader industry [20]

Zacks Rank Upgrade and Earnings Estimates - Powell Industries (POWL) has been upgraded to a Zacks Rank 1 (Strong Buy), reflecting an upward trend in earnings estimates, which is a powerful force impacting stock prices [1][4] - The Zacks rating system is useful for individual investors as it leverages changes in earnings estimates to predict near-term stock price movements [2][5] - The Zacks Rank system maintains an equal proportion of 'buy' and 'sell' ratings across over 4,000 stocks, with only the top 5% receiving a 'Strong Buy' rating [7] Earnings Estimate Revisions for Powell Industries - For the fiscal year ending September 2025, Powell Industries is expected to earn $13.70 per share, representing an 11.5% increase from the previous year [6] - Over the past three months, the Zacks Consensus Estimate for Powell Industries has increased by 10.1% [10] - The upgrade to Zacks Rank 1 places Powell Industries in the top 5% of Zacks-covered stocks, indicating strong potential for near-term stock price appreciation [11][14] Impact of Earnings Estimate Revisions on Stock Prices - Empirical research shows a strong correlation between earnings estimate revisions and near-term stock price movements [5][12] - Institutional investors use earnings estimates to calculate the fair value of a company's shares, and changes in these estimates can lead to significant stock price movements [12] - Zacks Rank 1 stocks have historically generated an average annual return of +25% since 1988, highlighting the predictive power of earnings estimate revisions [17] Zacks Rating System and Earnings Picture - The Zacks rating system relies solely on changes in a company's earnings picture, tracking EPS estimates for the current and following years through the Zacks Consensus Estimate [15] - The system uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank 1 (Strong Buy) to Zacks Rank 5 (Strong Sell) [17]

Company Comparison - Powell Industries (POWL) has a Zacks Rank of 2 (Buy), indicating a strong earnings estimate revision trend, while ABB (ABBNY) has a Zacks Rank of 3 (Hold) [3] - POWL's forward P/E ratio is 17.62, significantly lower than ABBNY's 26.77, suggesting better value [5] - POWL's PEG ratio of 1.26 is more attractive than ABBNY's 2.71, indicating better earnings growth potential relative to its valuation [5] - POWL's P/B ratio of 5.99 is lower than ABBNY's 7.33, showing a more favorable market-to-book value comparison [6] - POWL holds a Value grade of B, outperforming ABBNY's Value grade of D, based on various valuation metrics [6] Valuation Metrics - The Value category evaluates companies using key metrics such as P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] - POWL demonstrates superior valuation metrics across multiple indicators, making it a more attractive option for value investors [7] Investment Strategy - Combining a strong Zacks Rank with a high Value grade in the Style Scores system has proven effective for identifying value stocks [2] - Value investors analyze traditional figures and metrics to determine if a company is undervalued at its current share price levels [3]