• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

Powell Industries stock price sends mixed signals: is it a good buy?

by April 15, 2025
by April 15, 2025

Powell Industries stock price has crashed and formed a death cross pattern in the past few months as concerns about tariffs and costs remained. It initially peaked at $363.55 in November last year and is currently $171.50. So, is it safe to buy the POWL stock dip or sell the rip?

Powell Industries has been a growth industrial giant

Powell Industries is a top American company that designs and manufactures products like integrated power control room substations, switchgear, circuit breakers, and bus duct systems that are used in various industries. 

Its top customers are in industries like utilities, oil and gas, mining, transportation, and data centers. The latter segment has been its top growth stories in the past few years as demand for data centers has jumped.

As a result, Powell Industries’ revenue jumped from over $518 million in 2020 to over $1.02 billion last year. Most of this growth came from data centers as companies like Amazon, Microsoft, and Google. 

The most recent results showed that Powell’s business continued doing well in the first fiscal quarter. Its revenue rose by 24% to $241 million, with key industries like electric utility and oil and gas segments also complementing the data center business.

The company’s backlog continued rising, with new orders rising by $269 million to $1.3 billion. Some of this backlog came from a large LNG project at the Gulf Coast. The company hopes to continue growing this year as it continues to expand its manufacturing activity. 

POWL business to accelerate

Analysts are optimistic that Powell’s business will continue doing well as it boosts its diversification efforts. The average estimate is that its second-quarter revenue will grow by 10% to $282 million, followed by $307 million in the next quarter. For the year, analysts believe that its revenue will grow to $1.13 billion this year and $1.18 billion next year. 

The average estimate is that its earnings per share (EPS) will be $14 this year, up from $12.29 a year earlier. It will then hit $15 a share next year.

The risk, however, is that the company could see elevated costs because of Donald Trump’s tariffs. Most notably, the company will be hurt by the relatively higher steel and aluminium costs. 

A key catalyst for the Powell Industries stock price is that it is not highly overvalued. It has a forward price-to-earnings ratio of 12.5, much lower than the S&P 500 index estimate of 21. This valuation figure makes it undervalued since it has a high backlog and is growing its business. The average target of the Powell Industries stock is $269, up by 57% from its current level. 

Powell Industries stock price analysis

POWL chart by TradingView

The daily chart shows that the POWL stock price has been in a strong downtrend in the past few months. It dropped from a high of $364 in November last year to a low of $153.20. It moved below the ascending trendline that connects the lowest swings since January 2024. 

Worse, the Powell Industries stock price formed a death cross pattern as the 50-day and 200-day moving averages crossed each other. In most cases, this pattern often leads to more downside over time. 

The stock has formed a double-bottom pattern at $153.20, and whose neckline is at $201.63. That is a sign that the stock may stage a comeback as investors buy the dip. If this happens, the initial level to watch will be at $200. A break above that level will point to more gains, potentially to $250. However, a drop below the double-bottom pattern at $153 will invalidate the bullish outlook.

The post Powell Industries stock price sends mixed signals: is it a good buy? appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Adobe invests in AI video firm Synthesia after it hits $100 million in recurring revenue
next post
Watch out! SCHD ETF could form the risky death cross pattern

Related Posts

Top Nifty 50 Index gainers and losers of...

August 25, 2025

Here’s why the Orsted share price is crashing...

August 25, 2025

Foxconn recalls more Chinese engineers from India in...

August 24, 2025

Bank of America identifies 5 stocks with strong...

August 24, 2025

Cracker Barrel stock: why going back to the...

August 24, 2025

Top 3 stocks to buy with strong cash...

August 24, 2025

Here’s the only FTSE 100 stock in Warren...

August 24, 2025

US government’s investment in Intel may not be...

August 24, 2025

Top 4 Nasdaq 100 Index and QQQ ETF...

August 24, 2025

Hang Seng Index: bubble warnings ahead of Alibaba,...

August 24, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • How to Invest in Internet of Things (IoT) Companies

    August 25, 2025
  • CrossFit Reminds Us Who’s Really Running Your Life

    August 25, 2025
  • Why Americans Should Fear Washington in Intel’s Boardroom

    August 25, 2025
  • Trump Plays for All the Federal Reserve Marbles

    August 25, 2025
  • Top Nifty 50 Index gainers and losers of 2025 revealed

    August 25, 2025
  • Here’s why the Orsted share price is crashing today

    August 25, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 5

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 6

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025
  • 7

    Elon Musk says federal employees must fill out productivity reports or resign

    February 23, 2025

Categories

  • Economy (2,309)
  • Editor's Pick (218)
  • Investing (185)
  • Stock (1,563)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

European markets open: Stoxx 600 gains ahead...

June 5, 2025

JD.com, Freshippo step up to support struggling...

April 12, 2025

Santander branch closures: 95 UK branches to...

March 19, 2025