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Are Industrial Products Stocks Lagging Powell Industries (POWL) This Year?

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For those looking to find strong Industrial Products stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Powell Industries (POWL - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Industrial Products peers, we might be able to answer that question.

Powell Industries is a member of our Industrial Products group, which includes 222 different companies and currently sits at #2 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Powell Industries is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for POWL's full-year earnings has moved 44.2% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, POWL has gained about 65.5% so far this year. At the same time, Industrial Products stocks have gained an average of 6.7%. This means that Powell Industries is outperforming the sector as a whole this year.

Another Industrial Products stock, which has outperformed the sector so far this year, is Zebra Technologies (ZBRA - Free Report) . The stock has returned 7% year-to-date.

In Zebra Technologies' case, the consensus EPS estimate for the current year increased 2.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Powell Industries is a member of the Manufacturing - Electronics industry, which includes 16 individual companies and currently sits at #152 in the Zacks Industry Rank. Stocks in this group have gained about 15.8% so far this year, so POWL is performing better this group in terms of year-to-date returns.

Zebra Technologies, however, belongs to the Manufacturing - Thermal Products industry. Currently, this 4-stock industry is ranked #7. The industry has moved +5.8% so far this year.

Powell Industries and Zebra Technologies could continue their solid performance, so investors interested in Industrial Products stocks should continue to pay close attention to these stocks.


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