Long Position on POWL @ $34.00 on 12/29/2022 (Momentum)

Powell Industries, Inc. (POWL) 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. 

Shares have formed a bullish "flag" following it's latest quarterly report. On December 5th, POWL reported Quarter September 2022 earnings of $0.73 per share on revenue of $162.7 million. Revenue grew 25.7% on a year-over-year basis. That is well above the $0.28 per share Powell earned on $129.5 million in revenue during the same three months of last year. Powell also booked $259 million in new orders during the quarter, its highest total since the second quarter of fiscal 2020, fueled by a solid post-pandemic recovery in a number of its end markets. Highest share prices are expected.

Entry Point: $34.00

Stop Loss: $32.25

Trading Range: $18.81 to $38.14

Target Price: $37.30

Position closed on 1/10/2023 at price of $37.90 with a 11.47% gain in 12 days.

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