Powell Industries, Inc.·Industrials

I am rating Powell Industries (POWL) a Strong Buy because the company sits inside AI power bottleneck. Data centers need more than chips and cooling. They need reliable electrical distribution systems. The main growth drivers are backlog conversion, data center electrical infrastructure, utility grid demand and automation services. I estimate these drivers support $1.65Bn of 2027 revenue. My price target is $374, representing a 38% upside potential from current price $271. I arrive at my PT by using my estimated $7.58 EPS and 49.35x FWD non-GAAP P/E.

POWL is gaining momentum from electric utility and data center demand, driving strong bookings growth and a record backlog.

Zacks.com users have recently been watching Powell Industries (POWL) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.

On May 18, 2026, Powell Industries Inc (POWL) shares fell 8.8% today, bringing the current price to $266.80. This decline follows a one-week performance of -17.

POWL surges on strong backlog growth and data center demand, but rising costs and premium valuation may limit near-term upside.

POWL's diversification beyond oil and gas is gaining momentum, boosting backlog growth and expanding demand across utility and industrial markets.
Powell Industries, Inc., together with its subsidiaries, designs, develops, manufactures, sells, and services custom-engineered equipment and systems for the distribution, control, and monitoring of electrical energy. The company's principal products include integrated power control room substations, custom-engineered modules, electrical houses, medium-voltage circuit breakers, monitoring and control communications systems, motor control centers, and bus duct systems, as well as traditional and arc-resistant distribution switchgears and control gears. Its products have application in voltages ranging from 480 volts to 38,000 volts; and are used in oil and gas refining, onshore and offshore oil and gas production, petrochemical, liquid natural gas terminals, pipeline, terminal, mining and metals, light rail traction power, electric utility, pulp and paper, and other heavy industrial markets. It also provides value-added services, such as spare parts, field service inspection, installation, commissioning, modification and repair, retrofit and retrofill components for existing systems, and replacement circuit breakers for switchgear. The company has operations in the United States, Canada, the Middle East, Africa, Europe, Mexico, and Central and South America. Powell Industries, Inc. was founded in 1947 and is headquartered in Houston, Texas.
Industrials
Electrical Equipment & Parts
2,748
1980-03-17
1.14