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EnerSys (ENS) Hits 52-Week High: What's Driving the Stock?
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Shares of EnerSys (ENS - Free Report) hit a fresh 52-week high of $71.09 on Aug 22, before sliding a notch lower, to close at $71.08. The closing price represents a striking one-year share price appreciation of 42.4% and a year-to-date return of 27.1%. The company’s average trading volume for the last three months was 250,579 shares.
What is Driving the Stock Upward?
Headquartered in Pennsylvania, EnerSys is a leading operator in the lead-acid battery market, enjoying a dominant position in the Reserve Power and Motive Power markets. The company has a positive momentum in its global motive power business, which is experiencing positive organic volumes across all regions.
EnerSys is confident about the future prospects of its Motive Power business on the back of a sustained uptick in orders. Prospects of the Reserve power business also remain robust, stemming from the surge in demand for Thin Plate Pure Lead batteries employed in UPS, cable television and auxiliary power units for trucks.
Going forward, EnerSys expects to expand its market share by launching premium products in nickel, zinc and lithium batteries to bolster growth. Encouragingly, the company has been experiencing double-digit order growth in the region, driven by the previously announced fiber-to-the-home project in Australia.
This apart, EnerSys’ strategic acquisitions are projected strengthen its core business lines. We believe the Australia-based ICS Industries buyout during second-quarter fiscal 2016 has significantly elevated its foothold in the stored energy business. Also, the recent partial takeover of molten salt "thermal" batteries manufacturer – The Enser Corporation – looks promising. This transaction is likely to broaden its capabilities in the design and development, testing, and automated manufacturing of thermal batteries for the U.S. Department of Defense as well as allied militaries.
Adding to the positives, the stock has been seeing solid activity on the earnings estimate revision front as well, indicating that analysts have turned bullish on the company's growth prospects. Over the last 30 days, the Zacks Consensus Estimate for fiscal 2017 was revised upward by 1.2% to $4.39.
With respect to earnings surprise, EnerSys has surpassed the Zacks Consensus Estimate in three of the last four quarters with an average positive surprise of 2.2%.
On Aug 10, 2016, the company reported better-than-expected first-quarter fiscal 2017 results. It posted earnings of $1.14 per share for the quarter, beating the Zacks Consensus Estimate of $1.10 and up a remarkable 14% on a year-over-year basis.
Revenues for the quarter increased 6.8% year over year to $600.6 million, driven by organic volume growth and contribution from acquisitions.
However, with more than half of its sales generated abroad, EnerSys has been hurt by global slowdown in industrial spending. Further, intensifying price wars and macroeconomic uncertainties may dent the company’s near-term prospects. EnerSys also faces strong competition from companies including Johnson Controls Inc. (JCI - Free Report) , Franklin Electric Co., Inc. (FELE - Free Report) and AO Smith Corp. (AOS - Free Report) .
EnerSys currently carries a Zacks Rank #2 (Buy), implying that it will outperform the broader U.S. equity market over the next one to three months.
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EnerSys (ENS) Hits 52-Week High: What's Driving the Stock?
Shares of EnerSys (ENS - Free Report) hit a fresh 52-week high of $71.09 on Aug 22, before sliding a notch lower, to close at $71.08. The closing price represents a striking one-year share price appreciation of 42.4% and a year-to-date return of 27.1%. The company’s average trading volume for the last three months was 250,579 shares.
What is Driving the Stock Upward?
Headquartered in Pennsylvania, EnerSys is a leading operator in the lead-acid battery market, enjoying a dominant position in the Reserve Power and Motive Power markets. The company has a positive momentum in its global motive power business, which is experiencing positive organic volumes across all regions.
EnerSys is confident about the future prospects of its Motive Power business on the back of a sustained uptick in orders. Prospects of the Reserve power business also remain robust, stemming from the surge in demand for Thin Plate Pure Lead batteries employed in UPS, cable television and auxiliary power units for trucks.
Going forward, EnerSys expects to expand its market share by launching premium products in nickel, zinc and lithium batteries to bolster growth. Encouragingly, the company has been experiencing double-digit order growth in the region, driven by the previously announced fiber-to-the-home project in Australia.
This apart, EnerSys’ strategic acquisitions are projected strengthen its core business lines. We believe the Australia-based ICS Industries buyout during second-quarter fiscal 2016 has significantly elevated its foothold in the stored energy business. Also, the recent partial takeover of molten salt "thermal" batteries manufacturer – The Enser Corporation – looks promising. This transaction is likely to broaden its capabilities in the design and development, testing, and automated manufacturing of thermal batteries for the U.S. Department of Defense as well as allied militaries.
ENERSYS INC Price, Consensus and EPS Surprise
ENERSYS INC Price, Consensus and EPS Surprise | ENERSYS INC Quote
Adding to the positives, the stock has been seeing solid activity on the earnings estimate revision front as well, indicating that analysts have turned bullish on the company's growth prospects. Over the last 30 days, the Zacks Consensus Estimate for fiscal 2017 was revised upward by 1.2% to $4.39.
With respect to earnings surprise, EnerSys has surpassed the Zacks Consensus Estimate in three of the last four quarters with an average positive surprise of 2.2%.
On Aug 10, 2016, the company reported better-than-expected first-quarter fiscal 2017 results. It posted earnings of $1.14 per share for the quarter, beating the Zacks Consensus Estimate of $1.10 and up a remarkable 14% on a year-over-year basis.
Revenues for the quarter increased 6.8% year over year to $600.6 million, driven by organic volume growth and contribution from acquisitions.
However, with more than half of its sales generated abroad, EnerSys has been hurt by global slowdown in industrial spending. Further, intensifying price wars and macroeconomic uncertainties may dent the company’s near-term prospects. EnerSys also faces strong competition from companies including Johnson Controls Inc. (JCI - Free Report) , Franklin Electric Co., Inc. (FELE - Free Report) and AO Smith Corp. (AOS - Free Report) .
EnerSys currently carries a Zacks Rank #2 (Buy), implying that it will outperform the broader U.S. equity market over the next one to three months.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>