EnerSys (ENS) Exceeds Market Returns: Some Facts to Consider
In the latest market close, EnerSys (ENS) reached $98.15, with a +1.21% movement compared to the previous day. This change outpaced the S&P 500's 0.76% gain on the day. On the other hand, the Dow registered a gain of 0.59%, and the technology-centric Nasdaq increased by 1.12%.
Heading into today, shares of the maker of industrial batteries had lost 3.94% over the past month, lagging the Industrial Products sector's loss of 1.08% and the S&P 500's gain of 2.5% in that time.
The investment community will be closely monitoring the performance of EnerSys in its forthcoming earnings report. The company is scheduled to release its earnings on February 7, 2024. The company's earnings per share (EPS) are projected to be $2.55, reflecting a 100.79% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $896.77 million, down 2.55% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.59 per share and a revenue of $3.66 billion, representing changes of +60.86% and -1.19%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for EnerSys. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection remained stagnant. EnerSys is currently a Zacks Rank #1 (Strong Buy).
From a valuation perspective, EnerSys is currently exchanging hands at a Forward P/E ratio of 11.29. Its industry sports an average Forward P/E of 20.65, so one might conclude that EnerSys is trading at a discount comparatively.
It's also important to note that ENS currently trades at a PEG ratio of 0.81. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. ENS's industry had an average PEG ratio of 1.88 as of yesterday's close.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 11, finds itself in the top 5% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ENS in the coming trading sessions, be sure to utilize Zacks.com.
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Enersys (ENS) : Free Stock Analysis Report
