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EnerSys (ENS) Surges 35.4% YTD: Will the Momentum Continue?
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Shares of EnerSys (ENS - Free Report) have gained more than 35% in the year-to-date period, against the industry’s 0.3% decrease. Technological expertise and effective pricing policies are supporting the company’s top line.
What’s Aiding ENS?
EnerSys’ Energy Systems segment is benefiting from strength in broadband, data center and telecom businesses, and favorable pricing actions. Also, increased battery sales in America & EMEA bode well. Robust demand in electrification and automation end markets as well as healthy backlog levels and stable demand trends are driving growth in the Motive Power segment. Robust demand from Class 8 Truck OEMs and accretive pricing policies are supporting the Specialty segment’s top line.
EnerSys aims to expand its product offerings by acquiring assets. The company acquired United Kingdom-based, battery service and maintenance provider Industrial Battery and Charger Services Limited (IBCS) in April 2023. The buyout of IBCS has bolstered the company’s motive power service offerings and strengthened its presence in the UK market. It also augmented ENS’ comprehensive range of battery-related services including installation and maintenance to repair and replacement.
Image Source: Zacks Investment Research
ENS’ consistent measures to reward its shareholders through dividend payments are also likely to have boosted the stock. The company paid out dividends of $28.5 million in fiscal 2023. EnerSys’ treasury stock buybacks totaled $22.9 million in fiscal 2023.
Will the Trend Last?
EnerSys is likely to benefit from its solid product offerings, a firm focus on product innovation (including lithium, Touch-Safe, CPUC and DC fast charge) and strengthening demand in the quarters ahead. EnerSys is also positioned to benefit from the Inflation Reduction Act in the time to come. The company expects most of its TPPL products and some portion of high-density traditional flooded lead acid batteries to qualify for the proposed tax credits.
Zacks Rank & Other Stocks to Consider
ENS currently sports a Zacks Rank #1 (Strong Buy). Some other top-ranked companies from the Industrial Products sector are discussed below:
IR delivered a trailing four-quarter earnings surprise of 12.6%, on average. In the past 60 days, estimates for Ingersoll Rand’s 2023 earnings have increased 7.5%. The stock has improved 11.8% in the year-to-date period.
Alamo Group Inc. (ALG - Free Report) presently sports a Zacks Rank of 1. ALG delivered a trailing four-quarter earnings surprise of 17.7%, on average.
In the past 60 days, estimates for Alamo’s 2023 earnings have increased 12.7%. The stock has gained 19.4% in the year-to-date period.
Axon Enterprise (AXON - Free Report) sports a Zacks Rank of 1. The company has a trailing four-quarter earnings surprise of 44.4%, on average.
In the past 60 days, estimates for Axon’s 2023 earnings have increased 13%. The stock has rallied 16.4% in the year-to-date period.
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EnerSys (ENS) Surges 35.4% YTD: Will the Momentum Continue?
Shares of EnerSys (ENS - Free Report) have gained more than 35% in the year-to-date period, against the industry’s 0.3% decrease. Technological expertise and effective pricing policies are supporting the company’s top line.
What’s Aiding ENS?
EnerSys’ Energy Systems segment is benefiting from strength in broadband, data center and telecom businesses, and favorable pricing actions. Also, increased battery sales in America & EMEA bode well. Robust demand in electrification and automation end markets as well as healthy backlog levels and stable demand trends are driving growth in the Motive Power segment. Robust demand from Class 8 Truck OEMs and accretive pricing policies are supporting the Specialty segment’s top line.
EnerSys aims to expand its product offerings by acquiring assets. The company acquired United Kingdom-based, battery service and maintenance provider Industrial Battery and Charger Services Limited (IBCS) in April 2023. The buyout of IBCS has bolstered the company’s motive power service offerings and strengthened its presence in the UK market. It also augmented ENS’ comprehensive range of battery-related services including installation and maintenance to repair and replacement.
Image Source: Zacks Investment Research
ENS’ consistent measures to reward its shareholders through dividend payments are also likely to have boosted the stock. The company paid out dividends of $28.5 million in fiscal 2023. EnerSys’ treasury stock buybacks totaled $22.9 million in fiscal 2023.
Will the Trend Last?
EnerSys is likely to benefit from its solid product offerings, a firm focus on product innovation (including lithium, Touch-Safe, CPUC and DC fast charge) and strengthening demand in the quarters ahead. EnerSys is also positioned to benefit from the Inflation Reduction Act in the time to come. The company expects most of its TPPL products and some portion of high-density traditional flooded lead acid batteries to qualify for the proposed tax credits.
Zacks Rank & Other Stocks to Consider
ENS currently sports a Zacks Rank #1 (Strong Buy). Some other top-ranked companies from the Industrial Products sector are discussed below:
Ingersoll Rand Inc. (IR - Free Report) presently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks.
IR delivered a trailing four-quarter earnings surprise of 12.6%, on average. In the past 60 days, estimates for Ingersoll Rand’s 2023 earnings have increased 7.5%. The stock has improved 11.8% in the year-to-date period.
Alamo Group Inc. (ALG - Free Report) presently sports a Zacks Rank of 1. ALG delivered a trailing four-quarter earnings surprise of 17.7%, on average.
In the past 60 days, estimates for Alamo’s 2023 earnings have increased 12.7%. The stock has gained 19.4% in the year-to-date period.
Axon Enterprise (AXON - Free Report) sports a Zacks Rank of 1. The company has a trailing four-quarter earnings surprise of 44.4%, on average.
In the past 60 days, estimates for Axon’s 2023 earnings have increased 13%. The stock has rallied 16.4% in the year-to-date period.