Powell Industries (POWL) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - Powell Industries (POWL) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in a company's earnings picture, which is a powerful determinant of near-term stock price movements [2][4]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in stock price movements [4]. Powell Industries' Earnings Outlook - The upgrade for Powell Industries reflects an improvement in its underlying business, which is expected to positively influence its stock price [5]. - For the fiscal year ending September 2025, Powell Industries is projected to earn $14.26 per share, unchanged from the previous year, with a 0.6% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks which have averaged a +25% annual return since 1988 [7]. - The upgrade of Powell Industries to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].