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Are Investors Undervaluing Enersys (ENS) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Enersys (ENS - Free Report) . ENS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 10.59. This compares to its industry's average Forward P/E of 26.20. Over the past 52 weeks, ENS's Forward P/E has been as high as 17.12 and as low as 9.92, with a median of 11.52.
We also note that ENS holds a PEG ratio of 0.76. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ENS's PEG compares to its industry's average PEG of 2.25. ENS's PEG has been as high as 1.22 and as low as 0.71, with a median of 0.82, all within the past year.
We should also highlight that ENS has a P/B ratio of 2.13. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.89. 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 2.28.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ENS has a P/S ratio of 1.02. This compares to its industry's average P/S of 2.71.
Finally, our model also underscores that ENS has a P/CF ratio of 10.28. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. ENS's current P/CF looks attractive when compared to its industry's average P/CF of 11.70. ENS's P/CF has been as high as 16.68 and as low as 9.90, with a median of 12.48, all within the past year.
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?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Enersys (ENS - Free Report) . ENS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 10.59. This compares to its industry's average Forward P/E of 26.20. Over the past 52 weeks, ENS's Forward P/E has been as high as 17.12 and as low as 9.92, with a median of 11.52.
We also note that ENS holds a PEG ratio of 0.76. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ENS's PEG compares to its industry's average PEG of 2.25. ENS's PEG has been as high as 1.22 and as low as 0.71, with a median of 0.82, all within the past year.
We should also highlight that ENS has a P/B ratio of 2.13. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.89. 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 2.28.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ENS has a P/S ratio of 1.02. This compares to its industry's average P/S of 2.71.
Finally, our model also underscores that ENS has a P/CF ratio of 10.28. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. ENS's current P/CF looks attractive when compared to its industry's average P/CF of 11.70. ENS's P/CF has been as high as 16.68 and as low as 9.90, with a median of 12.48, all within the past year.
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.