BN · rank #14 · 2026-10-22
POWL
NASDAQ · $6.21B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.25 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +24.5% |
| 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. | 2.10 |
| 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. | +57.1% |
| Last EPS surprise Most recent reported EPS versus consensus. | -5% |
| Market cap (USD) | $6.21B |
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 engineers and manufactures custom electrical switchgear and distribution systems for power-intensive end markets including oil & gas, LNG, utilities, and increasingly AI data centers.
Rationale
A $2.4B backlog (69% YoY growth), a record $934M quarter of new orders including a $400M+ data-center win, and a 3.0x book-to-bill ratio directly validate the bottleneck-solver thesis—Powell is capturing real, contracted demand from the AI power infrastructure buildout, not merely riding sentiment.
Material risks
- 1Backlog concentration and execution risk are acute—rapid capacity expansion across Jacintoport, Houston, and Ohio simultaneously, combined with a 69% backlog surge, raises real probability of labor shortfalls, supply-chain delays, or margin compression that could cause revenue conversion to slip well beyond the 12-month guidance window.
- 2Powell holds no disclosed patents or sole-source position, meaning a well-capitalized competitor (e.g., Eaton, Schneider, ABB) could undercut pricing or absorb future data-center awards, particularly if hyperscalers begin standardizing on catalog-grade switchgear rather than custom-engineered solutions.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.