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Are Investors Undervaluing Enersys (ENS) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Enersys (ENS - Free Report) . ENS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 11.08, which compares to its industry's average of 22.37. Over the last 12 months, ENS's Forward P/E has been as high as 17.47 and as low as 9.92, with a median of 13.36.
We also note that ENS holds a PEG ratio of 0.79. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ENS's industry has an average PEG of 1.98 right now. Within the past year, ENS's PEG has been as high as 1.41 and as low as 0.71, with a median of 0.95.
Investors should also recognize that ENS has a P/B ratio of 2.38. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. ENS's current P/B looks attractive when compared to its industry's average P/B of 3.08. Over the past 12 months, ENS's P/B has been as high as 2.75 and as low as 2.03, with a median of 2.34.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ENS has a P/S ratio of 1.04. This compares to its industry's average P/S of 2.47.
Value investors will likely look at more than just these metrics, but the above data helps show that Enersys is likely undervalued currently. And when considering the strength of its earnings outlook, ENS sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Enersys (ENS) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Enersys (ENS - Free Report) . ENS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 11.08, which compares to its industry's average of 22.37. Over the last 12 months, ENS's Forward P/E has been as high as 17.47 and as low as 9.92, with a median of 13.36.
We also note that ENS holds a PEG ratio of 0.79. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ENS's industry has an average PEG of 1.98 right now. Within the past year, ENS's PEG has been as high as 1.41 and as low as 0.71, with a median of 0.95.
Investors should also recognize that ENS has a P/B ratio of 2.38. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. ENS's current P/B looks attractive when compared to its industry's average P/B of 3.08. Over the past 12 months, ENS's P/B has been as high as 2.75 and as low as 2.03, with a median of 2.34.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ENS has a P/S ratio of 1.04. This compares to its industry's average P/S of 2.47.
Value investors will likely look at more than just these metrics, but the above data helps show that Enersys is likely undervalued currently. And when considering the strength of its earnings outlook, ENS sticks out at as one of the market's strongest value stocks.