Jim Cramer’s Best Performers List: Top 10 Stocks

4. Powell Industries, Inc. (NASDAQ:POWL)

Talking about Powell Industries, Inc. (NASDAQ:POWL), Cramer said it supplies to companies requiring critical electrical infrastructure, often for data centers.

“Fourth: We highlighted Powell Industries back in August. Here’s an old-line industrial that makes custom-engineered equipment to control electricity. Their machinery was primarily used by oil and gas companies, but lately, Powell’s become the supplier of choice for those who need critical electrical infrastructure… up almost 259% for the year.”

Powell Industries (NASDAQ:POWL) is engaged in designing, manufacturing, and servicing custom-engineered electrical equipment and systems, including substations, motor control centers, switchgear, and related components. Over the past few quarters, the company has been making strides in expanding its footprint in the AI-driven data center market. While this segment remains a relatively small part of overall revenue, it shows promising potential for future growth.

The Commercial and Other Industrial sector—including data-center-related projects—accounted for 15% of the company’s revenue during the last quarter. Powell Industries (NASDAQ:POWL) Chief Financial Officer Michael Metcalf noted that commercial activity, in general, has been strong, providing a favorable tailwind as the company enters the final quarter of the fiscal year 2024. Brett A. Cope, Chairman and Chief Executive Officer, remarked that the largest growth in the last quarter came from the Electric Utility sector, with revenues in this segment rising by 30% compared to the same period last year.