Enersys (ENS) Up About 72% in a Year: Will the Trend Last?
EnerSys ENS appears in good shape, with its shares rallying 71.6% in the past year compared with the industry’s 29.8% growth.
What’s Aiding ENS?
Improvements in price mix and higher battery volumes in Americas (particularly increasing data center revenues) are supporting the company’s Energy Systems segment. The Specialty segment’s performance is being driven by strong volume in the U.S. transportation market and continued benefits from price mix. The global mega trends, including 5G expansion, rural broadband build-outs, electrification, automation and decarbonization, are aiding EnerSys.
The company has been strengthening and expanding its business through asset additions for a while. In April, EnerSys acquired the UK based battery service and maintenance provider Industrial Battery and Charger Services Limited, bolstering its motive power service offerings and strengthening its presence in the UK. The buyout also augmented ENS’ comprehensive range of battery-related services including installation and maintenance to repair and replacement.
The company utilizes its cash flow to reward its shareholders through dividend payouts. The company paid out dividends of $7.17 million in the first three months of fiscal 2024 (ended Jul 2, 2023). Enersys hiked its quarterly dividend by 29% to 22.5 cents per share in August.
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Will the Trend Last?
EnerSys is likely to benefit from its solid product offerings, a firm focus on product innovation (including lithium, Touch-Safe, CPUC and DC fast charge) and strengthening demand in the near term. Deceleration in inflation and improving supply-chain conditions are also likely to be beneficial for the company in the quarters ahead.
Zacks Rank & Other Stocks to Consider
EnerSys currently carries a Zacks Rank #2 (Buy). Some other top-ranked companies from the Industrial Products sector are discussed below:
Caterpillar Inc. CAT presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks.
CAT’s earnings surprise in the last four quarters was 18.5%, on average. In the past 60 days, estimates for Caterpillar’s earnings have increased 11.1% for 2023. The stock has gained 58.3% in the past year.
A. O. Smith Corp. AOS presently sports a Zacks Rank of 1. AOS’ earnings surprise in the last four quarters was 10.5%, on average.
In the past 60 days, estimates for A. O. Smith’s earnings have increased 2.9% for 2023. The stock has gained 30.7% in the past year.
Alamo Group Inc. ALG presently carries a Zacks Rank of 2. ALG’s earnings surprise in the last four quarters was 13%, on average.
In the past 60 days, estimates for Alamo’s 2023 earnings have increased 1.1%. The stock has gained 38.3% in the past year.
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Caterpillar Inc. (CAT) : Free Stock Analysis Report
A. O. Smith Corporation (AOS) : Free Stock Analysis Report
Alamo Group, Inc. (ALG) : Free Stock Analysis Report
Enersys (ENS) : Free Stock Analysis Report
