QM · rank #7 · 2026-07-20
POWL
NASDAQ · $8.59B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +409.65% |
|---|---|
| ROE TTM Return on equity, trailing 12 months. | +29.9% |
| Profit margin Net profit margin, trailing 12 months. | +16.5% |
| Market cap (USD) Size filter: > $500M required. | $8.59B |
| Anchor (recent) Close on 2026-06-18 | $297.20 |
| Anchor (far) Close on 2025-06-20 | $58.32 |
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 custom electrical power control and distribution systems for LNG terminals, AI data centers, and electric utilities, operating on a project-backlog model with high revenue visibility.
Rationale
The quality_momentum signal is reinforced by a 30% ROE, 16.5% profit margins, and a record backlog in structurally undersupplied power infrastructure markets driving the 4.1-sigma 12-1 momentum reading.
Material risks
- 1Margin compression is already visible — Q2 2026 EPS missed consensus as SG&A and R&D cost growth outpaced 6% revenue growth, threatening the quality leg of the thesis if operating leverage fails to materialize.
- 2Backlog concentration in LNG and AI data-center capex cycles means a single large project delay or hyperscaler spending pullback could rapidly deflate both revenue visibility and the momentum signal.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.