Powell Industries Stock And 2 Energy Security Picks Investors May Want To Watch

Global markets are being pulled in several directions at once as the G20 meeting in Asheville, the Iran war and elevated long term U.S. yields reshape how investors think about risk, pricing and energy security. This mix creates potential openings as well as traps. This article walks through three stocks from our Global Defense & Energy Security Beneficiaries screener that are directly exposed to these headlines and explains why they may deserve a closer look.

The three stocks below are just a starting sample, since the full Global Defense & Energy Security Beneficiaries screen surfaced 14 more companies with equally compelling narratives that are not covered here. To identify and analyze the highest conviction ideas that fit your own risk profile, head straight into the Global Defense & Energy Security Beneficiaries screener.

Powell Industries (POWL)

Powell Industries designs and services custom electrical equipment that helps keep energy and industrial infrastructure running safely and reliably, which links it naturally to a theme focused on securing critical energy assets. Virtually all of its US$1.16b revenue comes from electric equipment, including power control rooms, switchgear and electrical houses for sectors such as LNG facilities, pipelines, refineries, utilities and data centers across the US, Canada and several international regions. The company is mid cap in size, with a market value of about US$6.66b.

Powell Industries provides direct exposure to the power gear behind LNG plants, refineries and data centers at a time when governments and operators are paying closer attention to energy security and grid resilience. A record backlog tied to long lead energy and infrastructure projects, high return on equity and a strong balance sheet with no debt all point to a business that is already deeply embedded in critical projects rather than just bidding for them. The catch is that a rich valuation, reliance on project execution and sensitivity to tariffs and material costs could leave little room for error if growth or margins cool. For a more detailed view of whether current expectations still look reasonable as discount rates rise, the full narrative on Powell Industries provides additional context beyond this snapshot.

Powell Industries looks like a pure play on critical power gear, yet its rich pricing and record backlog raise sharper questions about what the market is really baking in. The 3 key rewards and 1 important warning sign could reveal whether that confidence is masking a pressure point investors are underestimating.

SECURE Waste Infrastructure (TSX:SES)

SECURE Waste Infrastructure sits squarely in the Global Defense & Energy Security Beneficiaries theme by handling the waste and midstream infrastructure that keeps North American oil and gas activity running. Most of its CA$1.54b revenue comes from Waste Management at about CA$1.31b, with another CA$235 million from Energy Infrastructure, giving it a mix of recurring waste processing cash flows and pipeline connected crude and NGL handling. With a market cap of roughly CA$5.4b, SECURE Waste Infrastructure is a sizeable way to get exposure to regulated, high barrier assets that can matter more as energy routes stay fragile.

Investors looking at SECURE Waste Infrastructure are effectively looking at a toll collector on North American oil and gas activity, with long term contracts on produced water and waste facilities, a growing network of pipe connected assets and metals recycling that could benefit from tariffs that favor scrap steel. At the same time, high leverage and heavy exposure to Western Canadian energy mean tariff policy or a weaker drilling cycle could hurt volumes and make financing more expensive just as regulators keep lifting the bar on environmental compliance. The real question is whether recurring infrastructure style cash flows and improving profitability justify those risks and the current valuation, or whether the market is already pricing in more good news than the business can easily deliver.

SECURE Waste Infrastructure looks like a steady toll collector on energy flows, yet its leverage and regional exposure keep the story unfinished. Read the SECURE Waste Infrastructure financial health report to see what the balance sheet might be signaling next.

Athabasca Oil (TSX:ATH)

Athabasca Oil is a pure play upstream producer in Alberta that ties directly into the energy security angle of this screener, with its fortunes closely linked to crude prices when supply routes are strained. The Athabasca thermal oil segment generates the bulk of revenue at about CA$1.28b, with the Duvernay Energy light oil and gas business adding roughly CA$103 million and small eliminations between segments. All revenue is currently from Canada and the company has a market value of about CA$5.1b.

For investors focused on how energy security and disrupted shipping routes can feed into higher oil prices, Athabasca Oil provides direct exposure to that theme through its thermal and light oil barrels in Western Canada. Forecast revenue and earnings growth above 30% a year are described as pointing to meaningful upside if elevated crude prices hold, yet profit margins have already come down and the stock is described as trading at a premium to its own cash flow estimate. When combined with reliance on external borrowing and recent revenue softness from lower production, this results in a situation where strong liquidity and a high liquids mix could matter a lot, but where funding risk and valuation may leave less room for disappointment.

Athabasca Oil’s growth story looks powerful, yet the balance between premium pricing, funding needs and oil exposure is easy to misread. The analyst forecasts for Athabasca Oil could clarify what the market might be missing next.

Seeking Fresh Alternatives Before They Fly

Fresh ideas often move first. By the time momentum headlines appear, the most attractive entry points can be gone. Focus on potential breakouts that are still under the radar and be prepared to act promptly.

• Target dependable income streams while others chase hype by scanning 12 dividend fortresses that aim to keep cash coming even when sentiment drops.
• Track early moves in automation and factory efficiency with a curated set from the 38 robotics and automation stocks before industrial spending momentum is fully reflected in the wider market.
• Look for resilient balance sheets and steady execution using the list of solid balance sheet and fundamentals (52 results) so you are responding to fundamentals rather than reacting after weaker companies start declining.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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