Kunakorn Rassadornyindee
Introduction
Powell Industries, Inc. (NASDAQ:POWL) is going to report Q3 numbers on August 5th after the market closes, so I thought I'd go through some numbers and the reasons why the company has not been performing to the
Powell Q3 Preview: Strength In Key Segments Should Help Its Performance
Summary
- I maintain my buy rating on Powell Industries with a $311 fair value, citing strong long-term potential despite recent sluggish revenue growth.
- Operational improvements and a sustained backlog at $1.3B provide stability, but a backlog increase or double-digit top-line growth could drive shares higher.
- Key growth drivers include data center and AI demand, LNG, and energy transition projects, with management's optimism and sector tailwinds supporting future upside.
- POWL's risks include economic cyclicality and tariff threats, but I see volatility as a buying opportunity and plan to add on dips near $170.
MSc in Finance. Long-term horizon investor mostly with 5-10 year horizon. I like to keep investing simple. I believe a portfolio should consist of a mix of growth, value, and dividend-paying stocks but usually end up looking for value more than anything. I also sell options from time to time.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of POWL either through stock ownership, options, or other derivatives. 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.
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