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Here's Why it is Worth Investing in EnerSys (ENS) Stock Now
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EnerSys (ENS - Free Report) currently boasts robust prospects on strength in its end markets, solid product portfolio, acquired assets and a sound capital-deployment strategy.
Image Source: Zacks Investment Research
The Zacks Rank #2 (Buy) company has a market capitalization of about $3 billion. In the past month, it has gained 0.7% against the industry’s decline of 2.3%.
Let’s delve into the factors that make investment in the company a smart choice at the moment.
Business Strength: EnerSys has been benefiting from its presence across diversified end markets, which enables it to neutralize risks across one end market with strength across others. Improving demand environment across its several end markets, including transportation, defense and lithium-based battery technology, are likely to drive its performance in the quarters ahead. Also, the company stands to gain from favorable trends, including rural broadband, home energy storage, 5G buildout and EV charging, in the long run.
Strong Backlog Level: ENS’ strong product offerings, focus on product innovation, technological expertise and effective pricing bode well. Also, its solid backlog of $1.2 billion at the end of third-quarter fiscal 2022 (ended Jan 2, 2022) is reflective of the company's opportunities in the quarters ahead.
Rewards to Shareholders: EnerSys remains committed to rewarding shareholders through share buybacks and dividend payouts. In the first three quarters of fiscal 2022, the company paid out dividends of $22.2 million and repurchased shares worth $114.5 million. Also, in March 2022, the company announced a share repurchase program worth $150 million. With the approval of this new share repurchase program, EnerSys was left to buy back shares worth $181 million in aggregate.
Estimate Revisions: In the past 60 days, the Zacks Consensus Estimate for the company’s fiscal 2023 (ending March 2023) earnings has trended up from $5.29 to $5.42, on the back of one upward estimate revision against none downward.
Other Key Picks
Some other top-ranked companies from the Zacks Industrial Products sector are discussed below.
Franklin Electric Co., Inc. (FELE - Free Report) presently carries a Zacks Rank #2. Its earnings surprise in the last four quarters was 17.4%, on average.
In the past 30 days, Franklin Electric’s earnings estimates have been stable for 2022. FELE’s shares have lost 2.5% in the past month.
Wrap Technologies, Inc. (WRAP - Free Report) presently has a Zacks Rank #2. Its earnings surprise in the last reported quarter was 13.33%.
In the past 30 days, Wrap’s earnings estimates have increased 8.5% for 2022. WRAP’s shares have surged 41.8% in the past month.
Ferguson plc (FERG - Free Report) presently carries a Zacks Rank #2. Its earnings surprise in the last reported quarter was 11.56%.
In the past 30 days, Ferguson’s earnings estimates have increased 6.5% for fiscal 2022 (ending July 2022). FERG’s shares have lost 14.1% in the past month.
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Here's Why it is Worth Investing in EnerSys (ENS) Stock Now
EnerSys (ENS - Free Report) currently boasts robust prospects on strength in its end markets, solid product portfolio, acquired assets and a sound capital-deployment strategy.
Image Source: Zacks Investment Research
The Zacks Rank #2 (Buy) company has a market capitalization of about $3 billion. In the past month, it has gained 0.7% against the industry’s decline of 2.3%.
Let’s delve into the factors that make investment in the company a smart choice at the moment.
Business Strength: EnerSys has been benefiting from its presence across diversified end markets, which enables it to neutralize risks across one end market with strength across others. Improving demand environment across its several end markets, including transportation, defense and lithium-based battery technology, are likely to drive its performance in the quarters ahead. Also, the company stands to gain from favorable trends, including rural broadband, home energy storage, 5G buildout and EV charging, in the long run.
Strong Backlog Level: ENS’ strong product offerings, focus on product innovation, technological expertise and effective pricing bode well. Also, its solid backlog of $1.2 billion at the end of third-quarter fiscal 2022 (ended Jan 2, 2022) is reflective of the company's opportunities in the quarters ahead.
Rewards to Shareholders: EnerSys remains committed to rewarding shareholders through share buybacks and dividend payouts. In the first three quarters of fiscal 2022, the company paid out dividends of $22.2 million and repurchased shares worth $114.5 million. Also, in March 2022, the company announced a share repurchase program worth $150 million. With the approval of this new share repurchase program, EnerSys was left to buy back shares worth $181 million in aggregate.
Estimate Revisions: In the past 60 days, the Zacks Consensus Estimate for the company’s fiscal 2023 (ending March 2023) earnings has trended up from $5.29 to $5.42, on the back of one upward estimate revision against none downward.
Other Key Picks
Some other top-ranked companies from the Zacks Industrial Products sector are discussed below.
Franklin Electric Co., Inc. (FELE - Free Report) presently carries a Zacks Rank #2. Its earnings surprise in the last four quarters was 17.4%, on average.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 30 days, Franklin Electric’s earnings estimates have been stable for 2022. FELE’s shares have lost 2.5% in the past month.
Wrap Technologies, Inc. (WRAP - Free Report) presently has a Zacks Rank #2. Its earnings surprise in the last reported quarter was 13.33%.
In the past 30 days, Wrap’s earnings estimates have increased 8.5% for 2022. WRAP’s shares have surged 41.8% in the past month.
Ferguson plc (FERG - Free Report) presently carries a Zacks Rank #2. Its earnings surprise in the last reported quarter was 11.56%.
In the past 30 days, Ferguson’s earnings estimates have increased 6.5% for fiscal 2022 (ending July 2022). FERG’s shares have lost 14.1% in the past month.