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Is Enersys (ENS) Stock Undervalued 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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 stock to keep an eye on is Enersys (ENS - Free Report) . ENS is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 8.89, which compares to its industry's average of 23.71. Over the past 52 weeks, ENS's Forward P/E has been as high as 12.08 and as low as 7.62, with a median of 9.82.

Another notable valuation metric for ENS is its P/B ratio of 1.81. The P/B ratio is used to compare a stock's market value with 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 5.01. Within the past 52 weeks, ENS's P/B has been as high as 2.45 and as low as 1.61, with a median of 2.09.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. 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 0.98. This compares to its industry's average P/S of 2.39.

Finally, our model also underscores that ENS has a P/CF ratio of 7.62. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 21.95. ENS's P/CF has been as high as 12.36 and as low as 6.76, with a median of 9.43, all within the past year.

These are only a few of the key metrics included in Enersys's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ENS looks like an impressive value stock at the moment.


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