QM · rank #7 · 2026-06-05

POWL

NASDAQ · $10.92B

verdict · PROCEED

The exact numbers the algorithm saw.

Factor scores and the inputs behind this pick.
Momentum 12-1 Return from 12 months ago to 1 month ago.	+407.23%
ROE TTM Return on equity, trailing 12 months.	+29.9%
Profit margin Net profit margin, trailing 12 months.	+16.5%
Market cap Size filter: > $500M required.	$10.92B
Anchor (recent) Close on 2026-05-06	$320.19
Anchor (far) Close on 2025-05-06	$63.13

The AI research card

Independent qualitative review of each pick before the order is placed.

Summary

Powell Industries, Inc. designs, develops, manufactures, sells, and services custom-engineered equipment and systems for the distribution, control, and monitoring of electrical energy across various industries, including oil and gas, petrochemical, and electric utilities.

Rationale

The strong momentum_12_1, coupled with high ROE and profit margin, suggests POWL is a quality company experiencing significant positive price trend, which aligns with a quality momentum strategy.

Material risks

1A significant portion of Powell's revenue is derived from fixed-price contracts, making it vulnerable to unexpected increases in material or labor costs that could compress margins.
2Delays in large projects, particularly in LNG facilities or a slowdown in data center and utility orders, could negatively impact backlog conversion and future growth.

Verdict reasoning

two_stage score=+2/3 verdicts={'openai': 'PROCEED', 'claude': 'CAUTION', 'gemini': 'PROCEED'} brief=caller-supplied