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Should Value Investors Buy Enersys (ENS) Stock?

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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.

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 a Value grade of A. The stock holds a P/E ratio of 10.35, while its industry has an average P/E of 23.03. Over the last 12 months, ENS's Forward P/E has been as high as 10.97 and as low as 7.62, with a median of 9.65.

Another notable valuation metric for ENS is its P/B ratio of 2.31. The P/B ratio pits a stock's market value against 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 5.10. Over the past year, ENS's P/B has been as high as 2.34 and as low as 1.61, with a median of 2.06.

Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by 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 1.31. This compares to its industry's average P/S of 2.47.

Finally, investors should note that ENS has a P/CF ratio of 9.49. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. ENS's current P/CF looks attractive when compared to its industry's average P/CF of 22.15. Over the past 52 weeks, ENS's P/CF has been as high as 11.50 and as low as 6.76, with a median of 8.88.

These are just a handful of the figures considered in Enersys's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ENS is an impressive value stock right now.


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