EnerSys (ENS) Exceeds Market Returns: Some Facts to Consider
The latest trading session saw EnerSys (ENS) ending at $102.55, denoting a +0.58% adjustment from its last day's close. The stock's change was more than the S&P 500's daily gain of 0.17%. Elsewhere, the Dow saw a downswing of 0.05%, while the tech-heavy Nasdaq appreciated by 0.2%.
Prior to today's trading, shares of the maker of industrial batteries had gained 15.67% over the past month. This has outpaced the Industrial Products sector's gain of 8.9% and the S&P 500's gain of 4.71% in that time.
Investors will be eagerly watching for the performance of EnerSys in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.32, marking an 82.68% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $896.77 million, reflecting a 2.55% fall from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.23 per share and a revenue of $3.66 billion, representing changes of +54.12% and -1.19%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for EnerSys. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been an 8.29% rise in the Zacks Consensus EPS estimate. Currently, EnerSys is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, EnerSys currently has a Forward P/E ratio of 12.39. This indicates a discount in contrast to its industry's Forward P/E of 23.63.
We can additionally observe that ENS currently boasts a PEG ratio of 0.89. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Manufacturing - Electronics industry had an average PEG ratio of 2.19.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 25, putting it in the top 10% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Enersys (ENS) : Free Stock Analysis Report
