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Here is What to Know Beyond Why Powell Industries, Inc. (POWL) is a Trending Stock
PowellPowell(US:POWL) zacks.com·2024-05-28 14:05

Core Viewpoint - Powell Industries (POWL) has recently gained significant attention, with a notable stock performance increase of +34.5% over the past month, outperforming the S&P 500 composite's +4.2% and the Zacks Manufacturing - Electronics industry's +4.9% [2] Earnings Estimates - For the current quarter, Powell Industries is projected to report earnings of $2.12 per share, reflecting a year-over-year increase of +39.5% and a +17.1% change in the Zacks Consensus Estimate over the last 30 days [5] - The consensus earnings estimate for the current fiscal year stands at $9.04, indicating a substantial change of +119.4% from the previous year, with a +19.9% adjustment in the last month [5] - For the next fiscal year, the consensus estimate is $8.99, showing a slight decrease of -0.6% from the prior year, but has increased by +17.7% recently [6] Revenue Growth - The consensus sales estimate for the current quarter is $217.37 million, which represents a year-over-year growth of +13% [10] - For the current fiscal year, the sales estimate is $888.12 million, indicating a +27% change, while the next fiscal year's estimate of $923.65 million reflects a +4% change [10] Recent Performance - In the last reported quarter, Powell Industries achieved revenues of $255.11 million, marking a year-over-year increase of +48.8%, and an EPS of $2.75 compared to $0.70 a year ago [11] - The company exceeded consensus revenue estimates by +24% and EPS estimates by +45.5% [11] - Over the last four quarters, Powell Industries has surpassed consensus EPS estimates three times and revenue estimates three times [12] Valuation - Powell Industries is graded C in terms of valuation, indicating it is trading at par with its peers [17] - The evaluation of valuation multiples such as P/E, P/S, and P/CF is essential to determine if the stock is fairly valued, overvalued, or undervalued [14] Conclusion - The Zacks Rank 1 (Strong Buy) for Powell Industries suggests a potential for outperformance in the near term, supported by positive earnings estimate revisions and strong revenue growth [7][18]