Powell Industries: Fundamentally Strongly Positioned To Capitalize On End Market Tailwinds

Research Wise
718 Followers
(12min)

Summary

  • Powell Industries has seen solid growth in the first half of 2024, with strong project activity across Oil & Gas, Utility, and Commercial markets.
  • Strong backlog levels and continued healthy quoting activity should drive revenue growth in the quarters ahead.
  • High margin backlog and operational improvement should support the company's margin in 2024.
  • With an attractive valuation compared to historical averages and peers, Powell Industries stock is a decent buy, considering the long-term growth potential.
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The Thesis

The first half of 2024 has been solid for Powell Industries (NASDAQ:POWL) due to strong project activity across all three major end markets, Oil & Gas, Utility, and Commercial. I expect this growth to continue further as the company enters into the second

This article was written by

718 Followers
As a finance enthusiast with experience in research, I am deeply engaged in studying diverse businesses, especially in the technology, industrial, and conglomerate sectors. I really like companies that have strong foundations and see them doing well in the long run. I enjoy writing about these businesses, telling their stories, strategies, and financial details. I use a mix of looking at their finances and writing to give insights into how well companies might do, helping people understand the market better. This focus on both looking at the numbers and explaining things reflects my dedication to both understanding and explaining the details of the financial world.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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