I am upgrading Powell Industries to a 'buy' with a $233 price target, reflecting 26% upside potential from current levels. Electric Utility and Commercial market segments are driving revenue growth, offsetting declines from Oil & Gas and Petrochemical markets due to completion of large projects that were booked in FY23. Capacity expansion, product innovation, and strong operational discipline are positioning Powell for future order and backlog growth.
In the closing of the recent trading day, Powell Industries (POWL) stood at $185.76, denoting a -2.35% change from the preceding trading day.
POWL gains from strength across its end markets, diversification efforts and pro-shareholder policies. High operating expenses remain a concern.
The financial stability of Powell is supported by his solid fundamentals and strong balance sheet, which includes zero debt and a cash position of $180 million. The company achieved $278.6 million in revenue and $46 million in net income, which led to higher earnings per share and expanding margins. The $1.3 billion backlog with 12–18 month convertibility provides strong visibility, which supports the continued improvement in financial performance.
Zacks.com users have recently been watching Powell Industries (POWL) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
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Powell Industries (POWL) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
From a technical perspective, Powell Industries (POWL) is looking like an interesting pick, as it just reached a key level of support. POWL recently overtook the 20-day moving average, and this suggests a short-term bullish trend.
From a technical perspective, Powell Industries (POWL) is looking like an interesting pick, as it just reached a key level of support. POWL recently overtook the 50-day moving average, and this suggests a short-term bullish trend.
Recently, Zacks.com users have been paying close attention to Powell Industries (POWL). This makes it worthwhile to examine what the stock has in store.
Powell Industries shows moderating topline growth due to declines in petrochemical and oil & gas sectors, but strong performance in utilities and commercial sectors supports steady growth. Strong demand in utility and data center markets, robust $1.3 billion backlog, coupled with improved operational efficiency, is expected to support topline and margins growth in FY25. Continued investment in R&D and new product launches, along with expanded manufacturing capacity, is expected to fuel long-term growth and market share gains.