Carillon Tower Advisers, an investment management company, recently released its third-quarter 2025 investor letter for the Carillon Eagle Small Cap Growth Fund. The letter highlighted the continued upward rally of equity markets, driven by AI acceleration, reduced inflationary impacts from tariffs, and prospects for further interest rate cuts from the U.S. Federal Reserve. Small-cap stocks also saw momentum in the quarter, with the Russell 2000® Growth Index up 12.19%.
One of the stocks mentioned in the investor letter was Powell Industries, Inc. (NASDAQ:POWL). Powell Industries designs, manufactures, and services custom-engineered equipment and systems. The stock saw a one-month return of 26.07% and a 47.02% gain over the last 52 weeks. As of October 28, 2025, Powell Industries was trading at $384.26 per share with a market capitalization of $4.637 billion.
Carillon Eagle Small Cap Growth Fund expressed optimism about Powell Industries in its investor letter, stating that the company is well-positioned to capitalize on the strength of electrical and grid-related capital investment. They highlighted Powell Industries’ customizable switchgear solutions and potential for increased exposure to data centers as factors driving future growth.
Despite its potential, Powell Industries is not among the 30 Most Popular Stocks Among Hedge Funds. However, 27 hedge fund portfolios held the stock at the end of the second quarter, up from 23 in the previous quarter. In the third quarter of fiscal 2025, Powell Industries reported total revenue of $286 million, slightly down from the previous year.
While Carillon Tower Advisers sees potential in Powell Industries, they believe that certain AI stocks offer greater upside potential with less downside risk. For investors looking for undervalued AI stocks with significant growth potential, they recommend exploring their free report on the best short-term AI stock.
Overall, Carillon Eagle Small Cap Growth Fund’s investor letter provides valuable insights into the performance and potential of Powell Industries, highlighting the company’s position in the market and future growth prospects. Investors can download the full investor letter for more information on the fund’s top picks in 2025.
