We recently published a list of Louis Navellier’s 10 Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where Powell Industries, Inc. (NASDAQ:POWL) stands against other Louis Navellier’s stock picks with huge upside potential.
Navellier & Associates is an independent money management firm founded in 1987 by renowned stock analyst Louis Navellier. Headquartered in Reno, Nevada, the firm has spent over three decades delivering disciplined, style-consistent investment strategies to both individual and institutional clients. Its core mission is to maximize returns while effectively managing excessive risk, offering customized portfolios built on a proprietary mix of quantitative and fundamental analysis. Distinct from firms that mimic market indexes, Navellier & Associates aims to outperform them, constructing portfolios that exhibit low correlation to standard benchmarks, greater diversification, and reduced overall volatility.
Navellier’s investment philosophy is based on a rigorous three-step, bottom-up stock selection methodology designed to identify inefficiencies and high-growth opportunities in the market. The first step in this process uses a proprietary quantitative screening system that evaluates market data and individual stock statistics, measuring risk through standard deviation and reward through alpha. This narrows the investment universe to stocks ranking in the top percentiles for favorable risk/reward characteristics. The second step employs fundamental analysis to target companies with strong earnings growth, healthy profit margins, and reasonable forward-looking price-to-earnings ratios. The third and final step involves a proprietary optimization model that strategically allocates portfolio holdings to maximize alpha and minimize volatility. This structured approach results in portfolios that are diversified across sectors and industries and are particularly suited for long-term investors aiming to achieve steady growth in varying market conditions.
Louis Navellier, the firm’s Founder, Chairman, Chief Investment Officer, and Chief Compliance Officer, continues to oversee the portfolios he helped originate. A highly respected voice in the financial community, Navellier has published quantitative growth stock research since 1980. His insights have been widely disseminated across CNBC, Fox Business News, Bloomberg, and MarketWatch, and he has been profiled in leading financial publications such as Forbes, Fortune, Barron’s, and The Wall Street Journal. His methodologies and career have also been spotlighted in books like Secrets of the Investment All-Stars and Investing Under Fire.
Navellier & Associates manages more than $1 billion in private and institutional assets and is a trusted resource for high-net-worth individuals and organizations. The firm offers personalized portfolio reviews that include detailed analysis, risk assessments, and tailored investment recommendations. Portfolio sizes range from $100,000 to over $100 million, and all investment decisions are uniquely customized to align with each client’s financial goals, preferences, and risk tolerance. This commitment to individualized service underscores the firm’s belief that every investor deserves a strategy tailored to their unique financial journey.
As of its latest 13F filing for the fourth quarter of 2024, Navellier & Associates reported managing approximately $834 million in securities. The firm’s top ten holdings represent 29.42% of the total portfolio, highlighting a focused yet strategically diversified investment approach rooted in decades of systematic analysis and seasoned market expertise.
Our Methodology
We searched through Navellier & Associates’ Q4 2024 13F filings to identify Louis Navellier’s stock picks with the highest upside potential. From the resultant data, we picked out the equities with upside potential higher than 50% based on analyst ratings and discussed why they stood out as sound potential investments. Finally, we ranked the stocks based on their respective price targets according to analysts. Additionally, we have mentioned the hedge fund sentiment around each stock using data from 1,009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A circuit breaker installed in a control panel illuminated by bright LEDs.
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 1st on our list of Louis Navellier’s 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 timeframe. 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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Disclosure: None. This article is originally published at Insider Monkey.