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Here's Why You Should Invest in EnerSys (ENS) Stock Now
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EnerSys (ENS - Free Report) is thriving on the back of technological expertise and effective pricing policies. Solid product offerings, a firm focus on product innovation (including lithium, Touch-Safe, CPUC and DC fast charge) and strengthening demand should drive the company’s growth.
Let’s delve into the factors that make this Zacks Rank #1 (Strong Buy) company a smart investment choice at the moment.
Business Strength: Healthy business across well-diversified end markets has been benefiting EnerSys over time. Its Energy Systems sales are driven by strength in broadband, data center and telecom businesses, and favorable pricing actions. Also, increased battery sales in America & EMEA bode well for the segment. 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 performance.
Accretive Acquisitions: The company solidified its product portfolio and leveraged business opportunities by adding assets. ENS acquired battery service and maintenance provider Industrial Battery and Charger Services Limited (IBCS) in April 2023. The addition of IBCS has bolstered the company’s motive power service offerings and strengthened its presence in the UK market. It also augmented EnerSys’ comprehensive range of battery-related services including installation and maintenance to repair and replacement.
Rewards to Shareholders: ENS is committed to rewarding its shareholders handsomely. The company paid out dividends worth $29.4 million in fiscal 2022 (ended March 2022) and $28.5 million in fiscal 2023 (ended March 2023). Its treasury stock buybacks totaled $156.4 million in fiscal 2022 and $22.9 million in fiscal 2023.
Northward Estimate Revision: The Zacks Consensus Estimate for ENS’ fiscal 2024 (ending March 2024) earnings has been revised upward by 11.6% in the past 60 days.
Price Performance: Shares of EnerSys have gained 47% in the year-to-date period, outperforming the industry’s 12.3% increase.
Image Source: Zacks Investment Research
Other Stocks to Consider
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 6.3%. The stock has improved 24.8% in the year-to-date period.
Alamo Group Inc. (ALG - Free Report) currently 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 increased 30.5% in the year-to-date period.
Axon Enterprise (AXON - Free Report) sports a Zacks Rank of 1, at present. 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 12.6%. The stock has rallied 17.2% in the year-to-date period.
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Here's Why You Should Invest in EnerSys (ENS) Stock Now
EnerSys (ENS - Free Report) is thriving on the back of technological expertise and effective pricing policies. Solid product offerings, a firm focus on product innovation (including lithium, Touch-Safe, CPUC and DC fast charge) and strengthening demand should drive the company’s growth.
Let’s delve into the factors that make this Zacks Rank #1 (Strong Buy) company a smart investment choice at the moment.
Business Strength: Healthy business across well-diversified end markets has been benefiting EnerSys over time. Its Energy Systems sales are driven by strength in broadband, data center and telecom businesses, and favorable pricing actions. Also, increased battery sales in America & EMEA bode well for the segment. 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 performance.
Accretive Acquisitions: The company solidified its product portfolio and leveraged business opportunities by adding assets. ENS acquired battery service and maintenance provider Industrial Battery and Charger Services Limited (IBCS) in April 2023. The addition of IBCS has bolstered the company’s motive power service offerings and strengthened its presence in the UK market. It also augmented EnerSys’ comprehensive range of battery-related services including installation and maintenance to repair and replacement.
Rewards to Shareholders: ENS is committed to rewarding its shareholders handsomely. The company paid out dividends worth $29.4 million in fiscal 2022 (ended March 2022) and $28.5 million in fiscal 2023 (ended March 2023). Its treasury stock buybacks totaled $156.4 million in fiscal 2022 and $22.9 million in fiscal 2023.
Northward Estimate Revision: The Zacks Consensus Estimate for ENS’ fiscal 2024 (ending March 2024) earnings has been revised upward by 11.6% in the past 60 days.
Price Performance: Shares of EnerSys have gained 47% in the year-to-date period, outperforming the industry’s 12.3% increase.
Image Source: Zacks Investment Research
Other Stocks to Consider
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 6.3%. The stock has improved 24.8% in the year-to-date period.
Alamo Group Inc. (ALG - Free Report) currently 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 increased 30.5% in the year-to-date period.
Axon Enterprise (AXON - Free Report) sports a Zacks Rank of 1, at present. 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 12.6%. The stock has rallied 17.2% in the year-to-date period.