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Here's Why EnerSys (ENS) Shares Are Up Over 28% in 6 Months

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EnerSys (ENS - Free Report) appears in good shape, with its shares rallying 28.6% over the past six months compared with the industry’s 10.7% growth. EnerSys’ solid product offerings, a firm focus on product innovation (including lithium, Touch-Safe, CPUC and DC fast charge) and strengthening demand are expected to have driven the stock’s performance. Technological expertise and effective pricing are other tailwinds for the company.

Let’s look into the factors driving this current Zacks Rank #3 (Hold) player.

Catalysts Behind the Price Surge

Strength in broadband and data center businesses and favorable pricing actions are driving ENS’ Energy Systems sales. Robust demand in electrification and automation end markets is driving growth of the Motive Power segment. Specialty segment’s revenues are benefiting from steady demand from Class 8 Truck OEMs.

A solid product portfolio is supporting EnerSys’ growth. The company strengthened its position as a leading provider of NexSys Thin Plate Pure Lead (TPPL) products. ENS is also benefiting from favorable trends, including rural broadband, home energy storage, 5G buildout and EV charging, which will likely be favorable in the long term as well.

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EnerSys’ measures to reward shareholders through dividends and share buybacks are noteworthy. ENS paid out dividends of $21.4 million in the first nine months of fiscal 2023 (ended Jan 1, 2023). The company’s buyback totaled $22.9 million in the first nine months of fiscal 2023. Also, in March 2022, EnerSys announced a share repurchase program worth $150 million. While exiting the third quarter of fiscal 2023, the company was left to repurchase shares worth $40.8 million in aggregate.

Stocks to Consider

Some better-ranked companies from the Industrial Products sector are discussed below:

Deere & Company (DE - Free Report) presently sports a Zacks Rank #1 (Strong Buy). DE’s earnings surprise in the last four quarters was 4.7%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.

In the past 60 days, estimates for Deere & Company’s fiscal 2023 earnings have increased 8.7%. The stock has rallied 10.4% in the past six months.

Ingersoll Rand Inc. (IR - Free Report) presently carries a Zacks Rank #2 (Buy). IR’s earnings surprise in the last four quarters was 8.5%, on average.

In the past 60 days, estimates for Ingersoll Rand’s 2023 earnings have increased 1.7%. The stock has gained 10.4% in the past six months.

AGCO Corporation (AGCO - Free Report) presently has a Zacks Rank of 2. AGCO’s earnings surprise in the last four quarters was 13.4%, on average.

In the past 60 days, estimates for AGCO’s 2023 earnings have increased 2.2%. The stock has rallied 18.4% in the past six months.

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