Power Solutions International

PSIX

Market cap $2.04B

Tariff fears have returned to markets just as stocks passed the six-month mark from April's "Liberation Day" bottom. In this article, I look back to find the highest performing stocks since the big April correction and pull out the top five that still have Strong Quant Buy ratings. Each of these top five Strong Buy Quant stocks delivered exceptional six-month gains, supported by robust earnings growth, sector leadership, and healthy financials.

Power Solutions International has pivoted to AI infrastructure and data center power systems, driving a visible turnaround in financials. PSIX fundamentals have improved, warranting an upgrade in business outlook, but the stock's rally appears momentum-driven. Several risks remain overlooked as PSIX reaches new highs, suggesting caution for investors despite operational improvements.

Power Solutions International (PSIX) is benefiting from the secular AI-driven data center boom, with strong recent earnings and robust growth in its power systems segment. PSIX's Q2 results showed over 70% YoY revenue growth and margin expansion, driven primarily by demand for data center backup and continuous power solutions. Despite the positive outlook, PSIX faces risks from larger competitors like CMI and CAT, and its competitive moat in the data center niche remains limited.

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WOOD DALE, Ill., Sept. 18, 2025 (GLOBE NEWSWIRE) -- Power Solutions International, Inc. (the “Company”) today announced that on September 15, 2025, the Board of Directors of the Company appointed Zhaoying (Dorothy) Du as its General Counsel and Corporate Secretary, effective September 8, 2025.

The S&P 500 wrapped up a strong Q2 earnings season, with over 80% of companies reporting positive surprises, despite rising tariffs, driven by resilient consumer demand and huge AI spending. The S&P 500 delivered EPS growth of 12% YoY, driven by communication and tech stocks. Communication services also led in magnitude of beats, while tech's surprise percentage underperformed. SA Quant identified ten stocks that crushed Q2 earnings by 110% on average, including companies that successfully navigated tariff headwinds, exploited AI megatrends, or rode the spike in gold prices.

Power Solutions International, Inc. (“PSI” or “the Company”) is proud to announce a new cooperative agreement with HD Hyundai Infracore (HDI).

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Power Solutions International, Inc. exhibits signs that its operating leverage capacity has already peaked. PSIX margins are declining, SG&A expenses are rising faster than revenues, and management's explanations for cost issues are unconvincing. Despite the bullish consensus and strong momentum, I see this as an ideal time to lock in PSIX profits and wait for a better re-entry point.

Power Solutions delivered stellar Q2 results, with 74% revenue growth and strong momentum in its data center-focused power systems segment. “The stock remains attractively valued, with a PEG ratio of 0.68, based on conservative earnings assumptions. Recent price declines were largely caused by insider selling, and Weichai has completed only 37% of its planned share sale.