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Is EnerSys (ENS) a Great Value Stock Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is EnerSys (ENS - Free Report) . ENS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 13.81, which compares to its industry's average of 14.08. Over the last 12 months, ENS's Forward P/E has been as high as 16.23 and as low as 12.59, with a median of 14.18.

ENS is also sporting a PEG ratio of 1.38. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ENS's industry currently sports an average PEG of 1.47. Within the past year, ENS's PEG has been as high as 2.56 and as low as 1.26, with a median of 1.47.

Investors should also recognize that ENS has a P/B ratio of 2.77. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. ENS's current P/B looks attractive when compared to its industry's average P/B of 3.86. Over the past year, ENS's P/B has been as high as 3.12 and as low as 2.32, with a median of 2.74.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ENS has a P/S ratio of 1.23. This compares to its industry's average P/S of 1.37.

These are only a few of the key metrics included in EnerSys's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ENS looks like an impressive value stock at the moment.


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