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Industrial batteries manufacturer EnerSys (ENS - Free Report) is starting to stand out with bottom line expansion that even makes the Energizer (ENR - Free Report) Bunny jealous.
To that point, EnerSys stock currently covets a Zacks Rank #1 (Strong Buy) and lands the Bull of the Day while Energizer shares notably have a Zacks Rank #5 (Strong Sell). Although they are on opposite spectrums regarding battery production, EnerSys is a very reputable company in its own right with its products marketed to customers in over 100 countries.
Expansive Reach
The reasoning for the loose narrative with Energizer is that certainly many consumers and perhaps some investors may not know the name EnerSys but they understand that battery production is critical to many markets. Operating on a much larger scale in terms of industrial battery production, EnerSys' reach extends to applications in different markets as well such as aerospace, defense, and medical industries.
Image Source: Zacks Investment Research
The revenue chart above is very impressive but it is EnerSys’ probability and future earnings potential that makes its stock most compelling. EnerSys' annual earnings are expected to soar 54% in FY24 to $8.23 per share compared to $5.34 a share last year. Plus, EnerSys' FY25 EPS is expected to expand another 8% to $8.91 per share. (Energizer is expecting 2% EPS growth in FY24 and 6% EPS growth in FY25)
This is despite EnerSys' total sales being forecasted to dip -1% this year but rebound and rise 3% in FY25 to $3.77 billion. Notably, FY25 sales projections would represent 27% growth over the last five years with EnerSys’ EPS growth slated at 98% during this period as annual earnings were at $4.49 a share in 2021.
Image Source: Zacks Investment Research
Recent Performance & EPS Revisions
EnerSys’ price performance has correlated with its strong earnings outlook with ENS shares rising +25% over the last year which has topped the S&P 500’s +20% and its Zacks Subindustry's +15%. This has largely outperformed Energizers -14% performance in regards to a popular name among consumer battery makers.
One reason for vastly outperforming Energizer is that EnerSys’ Zacks Manufacturing-Electronics Industry is currently in the top 6% of over 250 Zacks industries while the Zacks Consumer Products-Staples Industry is in the bottom 23%. With these two battery makers being a perfect example within their respective industries, earnings estimate revisions for EnerSys are nicely up in the last 30 days for both FY24 and FY25 while Energizer’s EPS revisions have remained unchanged over the last month but are still noticeably lower over the last 60 days.
Image Source: Zacks Investment Research
Bottom Line
EnerSys’ expansive bottom line has made it one of the most intriguing growth stocks to watch at the beginning of the year. More importantly, battery production is critical to many markets, and EnerSys’ reach among the industrial industries among others makes its stock a viable investment for 2024 and beyond.
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Bull of the Day: EnerSys (ENS)
Industrial batteries manufacturer EnerSys (ENS - Free Report) is starting to stand out with bottom line expansion that even makes the Energizer (ENR - Free Report) Bunny jealous.
To that point, EnerSys stock currently covets a Zacks Rank #1 (Strong Buy) and lands the Bull of the Day while Energizer shares notably have a Zacks Rank #5 (Strong Sell). Although they are on opposite spectrums regarding battery production, EnerSys is a very reputable company in its own right with its products marketed to customers in over 100 countries.
Expansive Reach
The reasoning for the loose narrative with Energizer is that certainly many consumers and perhaps some investors may not know the name EnerSys but they understand that battery production is critical to many markets. Operating on a much larger scale in terms of industrial battery production, EnerSys' reach extends to applications in different markets as well such as aerospace, defense, and medical industries.
Image Source: Zacks Investment Research
The revenue chart above is very impressive but it is EnerSys’ probability and future earnings potential that makes its stock most compelling. EnerSys' annual earnings are expected to soar 54% in FY24 to $8.23 per share compared to $5.34 a share last year. Plus, EnerSys' FY25 EPS is expected to expand another 8% to $8.91 per share. (Energizer is expecting 2% EPS growth in FY24 and 6% EPS growth in FY25)
This is despite EnerSys' total sales being forecasted to dip -1% this year but rebound and rise 3% in FY25 to $3.77 billion. Notably, FY25 sales projections would represent 27% growth over the last five years with EnerSys’ EPS growth slated at 98% during this period as annual earnings were at $4.49 a share in 2021.
Image Source: Zacks Investment Research
Recent Performance & EPS Revisions
EnerSys’ price performance has correlated with its strong earnings outlook with ENS shares rising +25% over the last year which has topped the S&P 500’s +20% and its Zacks Subindustry's +15%. This has largely outperformed Energizers -14% performance in regards to a popular name among consumer battery makers.
One reason for vastly outperforming Energizer is that EnerSys’ Zacks Manufacturing-Electronics Industry is currently in the top 6% of over 250 Zacks industries while the Zacks Consumer Products-Staples Industry is in the bottom 23%. With these two battery makers being a perfect example within their respective industries, earnings estimate revisions for EnerSys are nicely up in the last 30 days for both FY24 and FY25 while Energizer’s EPS revisions have remained unchanged over the last month but are still noticeably lower over the last 60 days.
Image Source: Zacks Investment Research
Bottom Line
EnerSys’ expansive bottom line has made it one of the most intriguing growth stocks to watch at the beginning of the year. More importantly, battery production is critical to many markets, and EnerSys’ reach among the industrial industries among others makes its stock a viable investment for 2024 and beyond.