1. Powell Industries, Inc. (NASDAQ:POWL)
Number of Hedge Fund Holders as of Q4: 27
Navellier & Associates’ Equity Stake: $7.15 Million
Upside Potential as of April 23: 95.76%
Powell Industries, Inc. (NASDAQ:POWL), headquartered in Houston, Texas, is a well-established manufacturer of integrated and packaged electrical solutions that monitor and control the distribution of power across commercial and industrial markets. Founded in 1947 as a small metal-working shop to support Houston’s petrochemical sector, the company has since grown into a key player in electrical infrastructure technologies, serving a range of industries with cutting-edge solutions.
For the first quarter of fiscal 2025, which ended on December 31, 2024, Powell Industries, Inc. (NASDAQ:POWL) reported strong results that highlight its robust financial health and operational strength. Revenues rose by 24% year-over-year to $241 million, while gross profit reached $60 million, or 24.7% of revenue. Net income climbed to $35 million, translating to $2.86 per diluted share—a 44% increase compared to the prior year. The company reported $269 million in new orders during the quarter, signaling continued demand for its offerings. With $373 million in cash and short-term investments as of quarter-end and a market capitalization of approximately $1.98 billion, Powell maintains a highly favorable liquidity profile.
Powell Industries, Inc. (NASDAQ:POWL) has also significantly outperformed the broader electrical industry, posting a 107.3% earnings growth rate over the past year, which is significantly higher than the industry’s 5.2% decline. Strategically, Powell is expanding its operations in Houston and has increased its R&D budget by 26% to support innovation and margin enhancement. These investments target growth opportunities in emerging sectors such as data centers, signaling the company’s intent to diversify its market reach and elevate its competitive edge.
Looking forward, analysts expect Powell Industries, Inc. (NASDAQ:POWL) to achieve an annual revenue growth rate of 6.6% over the next three years. Reflecting this sentiment, Powell has been identified as one of Louis Navellier’s stock picks with huge upside potential. With a price target of $312 and an impressive projected upside of 95.76%, it is attracting keen attention from investors seeking substantial long-term gains.
Overall, POWL ranks first among Louis Navellier’s 10 stock picks with huge upside potential. While we acknowledge the potential of these stock picks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than POWL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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