Powell Industries, Inc. (POWL): One of the Underperforming Stocks Targeted By Short Sellers

Jabran Kundi

Wed, May 14, 2025, 8:38 AM 3 min read

We precocious published a database of 20 Underperforming Stocks Targeted By Short Sellers. In this article, we are going to instrumentality a look astatine wherever Powell Industries, Inc. (NASDAQ:POWL) stands against different underperforming stocks targeted by abbreviated sellers.

Short involvement refers to the percent of publically disposable shares that person been sold short. It is an indicator utilized by galore investors to find however beardown a company’s carnivore thesis whitethorn be. Due to the quality of abbreviated selling, the abbreviated involvement has go a fashionable indicator among investors.

The crushed it is fixed truthful overmuch weightage is that radical betting against a banal person usually done coagulated probe and are assured of a company’s downfall. They instrumentality unlimited risk, truthful erstwhile large investors oregon the astute wealth shorts a stock, radical instrumentality notice. They effort to unearth the reddish flags that whitethorn person prompted the precocious abbreviated interest.

We decided to excavation deeper and effort to find retired wherever astute wealth sees occupation ahead. To travel up with our database of 20 underperforming stocks targeted by abbreviated sellers, we looked astatine the worst-performing stocks of the past six months and past ranked them by the abbreviated interest.

A circuit breaker installed successful a power sheet illuminated by agleam LEDs.

Short interest: 14.69%

6 months’ performance: -28.08%

Powell Industries, Inc. (NASDAQ:POWL) is simply a designer, manufacturer, developer, seller, and work supplier of custom-engineered instrumentality and systems. Its cardinal products see custom-engineered modules, medium-voltage circuit breakers, integrated powerfulness power country substations, switches, and different products.

Powell Industries (NASDAQ:POWL) outperformed successful the erstwhile fiscal year, doubling its gross and achieving gross margins of 27%. The institution operates successful a marketplace that has historically had constrictive nett margins of astir 16 to 18% and is highly cyclical, truthful the steadfast made the champion usage of precocious demand.

Despite the stellar performance, Powell Industries (NASDAQ:POWL) faces imaginable risks from commercialized warfare uncertainties and a US economical slowdown, arsenic it could origin task delays, resulting successful reduced demand. The institution operates successful a competitory market, which could make terms challenges from larger players aft proviso normalizes. Delays successful projects similar LNG and emerging technologies similar c seizure products could impact its net estimates arsenic they are the main request drivers for the firm.

Overall, POWL ranks 16th connected our database of underperforming stocks targeted by abbreviated sellers. While we admit the imaginable of POWL arsenic an investment, our condemnation lies successful the content that immoderate AI stocks clasp greater committedness for delivering higher returns, and doing truthful wrong a shorter clip frame. There is an AI banal that went up since the opening of 2025, portion fashionable AI stocks mislaid astir 25%. If you are looking for an AI banal that is much promising than POWL but that trades astatine little than 5 times its earnings, cheque retired our study astir this cheapest AI stock.