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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.
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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Enersys (ENS - Free Report) . ENS is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 9.4, while its industry has an average P/E of 22.70. Over the past year, ENS's Forward P/E has been as high as 10.97 and as low as 7.62, with a median of 9.70.
Another notable valuation metric for ENS is its P/B ratio of 1.92. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 4.84. Over the past year, ENS's P/B has been as high as 2.28 and as low as 1.61, with a median of 2.07.
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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ENS has a P/S ratio of 0.98. This compares to its industry's average P/S of 2.28.
Finally, we should also recognize that ENS has a P/CF ratio of 8.09. 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 21.18. Over the past year, ENS's P/CF has been as high as 11.50 and as low as 6.76, with a median of 9.23.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Enersys is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ENS feels like a great value stock at the moment.
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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.
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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Enersys (ENS - Free Report) . ENS is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 9.4, while its industry has an average P/E of 22.70. Over the past year, ENS's Forward P/E has been as high as 10.97 and as low as 7.62, with a median of 9.70.
Another notable valuation metric for ENS is its P/B ratio of 1.92. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 4.84. Over the past year, ENS's P/B has been as high as 2.28 and as low as 1.61, with a median of 2.07.
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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ENS has a P/S ratio of 0.98. This compares to its industry's average P/S of 2.28.
Finally, we should also recognize that ENS has a P/CF ratio of 8.09. 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 21.18. Over the past year, ENS's P/CF has been as high as 11.50 and as low as 6.76, with a median of 9.23.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Enersys is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ENS feels like a great value stock at the moment.