Workflow
Is Powell Industries (POWL) a Solid Growth Stock? 3 Reasons to Think "Yes"
POWLPowell(POWL) ZACKS·2024-08-02 17:46

Growth Stocks and Powell Industries - Investors seek growth stocks for above-average returns, but these stocks carry higher risk and volatility [1] - The Zacks Growth Style Score helps identify cutting-edge growth stocks like Powell Industries (POWL), which has a favorable Growth Score and top Zacks Rank [2] - Stocks with strong growth features and high Zacks Rank consistently outperform the market [3] Earnings Growth - Earnings growth is crucial for investors, with double-digit growth indicating strong prospects [4] - Powell Industries' historical EPS growth rate is 48 6%, but the projected growth for this year is 191 5%, significantly higher than the industry average of 14 8% [5] Cash Flow Growth - Cash flow growth is vital for growth-oriented companies, enabling business expansion without external funding [6] - Powell Industries' year-over-year cash flow growth is 153 4%, compared to the industry average of 10 8% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 55 8%, versus the industry average of 7 1% [7] Earnings Estimate Revisions - Positive earnings estimate revisions are a strong indicator of near-term stock price movements [8] - Powell Industries has seen a 32 9% surge in the Zacks Consensus Estimate for the current year over the past month [9] Conclusion - Powell Industries is a Zacks Rank 1 stock with a Growth Score of A, positioning it well for outperformance [10][11]