BN · rank #20 · 2026-09-04
POWL
NASDAQ · $6.38B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.28 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +24.6% |
| Forward net margin Consensus forward net margin. | +16.8% |
| Net margin TTM Trailing twelve month net margin. | +16.5% |
| Margin expansion Forward minus trailing net margin (percentage points). | +0.3% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 1.88 |
| Debt / FCF Net debt relative to free cash flow. Lower is safer. | 0.01× |
| Analyst upside Spread between the consensus 12m target and the current price. | +59.9% |
| Last EPS surprise Most recent reported EPS versus consensus. | -5% |
| Market cap (USD) | $6.38B |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
Powell Industries (POWL) designs and manufactures switchgear, motor control centers, and power distribution equipment critical to industrial and data center electrical infrastructure.
Rationale
Accelerating AI datacenter buildout is creating genuine bottlenecks in medium-voltage switchgear supply, and Powell's rising sequential revenues ($296.6M → $312M) with expanding gross margins (~30%+) confirm real demand pull rather than sentiment-only rotation.
Material risks
- 1A recent EPS miss of -4.70% alongside rapid revenue scaling raises execution risk — if labor or component constraints compress margins as backlog converts, the forward margin expansion thesis (only +0.33%) unravels quickly.
- 2At a forward PEG of 1.88 and a $6.4B market cap, POWL already prices in significant growth; analyst upside of ~60% implies consensus is lagging, but any datacenter capex pause or hyperscaler in-sourcing of electrical procurement could reprice the stock sharply.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.