Powell(US:POWL) ZACKS·2025-11-26 18:01Core Viewpoint - Powell Industries (POWL) has received an upgrade 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 the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years [1]. - Changes in a company's future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements [4]. - Institutional investors often rely on earnings estimates to determine the fair value of a company's shares, leading to significant stock price movements based on their buying or selling activities [4]. Powell Industries' Earnings Outlook - For the fiscal year ending September 2026, Powell Industries is expected to earn $15.27 per share, which remains unchanged from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Powell Industries has increased by 2.4%, indicating a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) to Zacks Rank 5 (Strong Sell) [7]. - The system has a strong track record, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - The upgrade of Powell Industries to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].