Jim Cramer Urges Taking One-Third Profits After 214% Powell Industries Rally
An investor who bought Powell Industries shares at $172 nine months ago has realized a 214% gain, prompting Jim Cramer to advise selling one-third of the position and letting the remainder run risk-free. Since that recommendation aired, the stock has climbed a further 116%.
1. Cramer's Profit-Taking Advice
During a live segment, Jim Cramer highlighted an investor’s 214% gain on Powell Industries shares purchased at $172 nine months prior and recommended immediately selling one-third of the position. He emphasized that removing this portion locks in significant returns and allows the remaining shares to trade with the house’s money.
2. Share Price Performance History
At the time of the comment, the stock had already surged 214% from the investor’s entry point. In the days following Cramer’s guidance, Powell Industries shares rallied an additional 116%, underscoring strong momentum in the industrial energy infrastructure space.
3. Potential Market Impact
Cramer’s endorsement and clear profit-taking strategy could attract fresh retail and institutional interest, potentially driving further volatility. The balance of locking in gains while maintaining exposure aligns with risk management practices for momentum-driven stocks.