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EnerSys (ENS) Exceeds Market Returns: Some Facts to Consider

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In the latest trading session, EnerSys (ENS - Free Report) closed at $91.53, marking a +1% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.11%. Meanwhile, the Dow lost 0.11%, and the Nasdaq, a tech-heavy index, added 0.23%.

Shares of the maker of industrial batteries have appreciated by 0.25% over the course of the past month, underperforming the Industrial Products sector's gain of 4.45% and the S&P 500's gain of 1.5%.

The investment community will be paying close attention to the earnings performance of EnerSys in its upcoming release. The company is forecasted to report an EPS of $2.02, showcasing a 10.99% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $899.77 million, down 9.11% from the year-ago period.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for EnerSys. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. EnerSys is currently a Zacks Rank #3 (Hold).

In the context of valuation, EnerSys is at present trading with a Forward P/E ratio of 10.51. Its industry sports an average Forward P/E of 21.76, so one might conclude that EnerSys is trading at a discount comparatively.

It is also worth noting that ENS currently has a PEG ratio of 0.75. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Manufacturing - Electronics industry was having an average PEG ratio of 2.

The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 64, this industry ranks in the top 26% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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