POWL is making strides in the lucrative oil and gas, and petrochemical markets, which makes the stock worth a watch amid rising operating expenses and intense competition.
Investors looking for stocks in the Manufacturing - Electronics sector might want to consider either Powell Industries (POWL) or Eaton (ETN). But which of these two stocks offers value investors a better bang for their buck right now?
Powell Industries (POWL) is at a 52-week high, but can investors hope for more gains in the future? We take a look at the company's fundamentals for clues.
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.
Investors interested in stocks from the Manufacturing - Electronics sector have probably already heard of Powell Industries (POWL) and Eaton (ETN). But which of these two stocks presents investors with the better value opportunity right now?
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.
POWL's strong prospects, driven by strength across its businesses, solid backlog and capacity expansionary initiatives, make it an attractive pick for investors.
POWL's top line grew 49.8% YoY in Q3 2024, reaching a record $288.2 million, due to strong performance in industrial, oil & gas, and petrochemical markets. Healthy demand environment and strong backlog should drive growth in the quarters ahead. Margin prospects look good as well, with expected volume growth and benefits from continued focus on operational improvements.
Powell Industries is benefiting from Industry 4.0 trends, diversifying from oil and gas to advanced automation and digital intelligence, driving significant revenue and margin improvements. Despite recent volatility, POWL's strong backlog, zero debt, and increasing earnings estimates make it a compelling buy, especially if the price drops below $150. Technological advancements and new market opportunities, including renewable energy and AI-driven demand, are expected to sustain Powell's growth and financial performance.
POWL's prospects are boosted by the higher oil/gas/ petroleum industry-wide capex and increased electrical power demands due to the generative AI boom/ utility upgrading. Despite previous concerns, POWL's fair value estimate has been upgraded thanks to its growing production capacity and the raised consensus forward estimates. The stock's PEG ratio of 0.06x is extremely cheap compared to its sector peers as well, supporting its high growth investment thesis.
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.
Investors interested in stocks from the Manufacturing - Electronics sector have probably already heard of Powell Industries (POWL) and Eaton (ETN). But which of these two stocks is more attractive to value investors?