Enersys (ENS) Top Line to Benefit From Favorable Pricing
On Nov 12, we issued an updated research report on Enersys ENS.
In the past three months, this Zacks Rank #1 (Strong Buy) stock has yielded a return of 16.9% against the industry’s decline of 8.7%.
Prevalent Scenario
Of late, EnerSys is gaining from favorable pricing and solid sales generated from its major businesses (like motive power) and end markets. This is likely to continue driving the company’s revenues in the quarters ahead. Also, the Zacks Consensus Estimate for EnerSys’ earnings has moved 1.4% north to $5.13 for fiscal 2019 (ending March 2019) over the past 60 days. Notably, the company’s earnings per share are projected to grow 10% in the next three to five years.
Also, EnerSys’ business streamlining and cost savings initiatives bode well for its future growth. Currently, the company is focusing on reducing the costs of operation. Notably, in the second-quarter fiscal 2019, it was able to outpace the rise in spending for lean, new products development as well as system enhancements with its cost-saving initiatives.
The company’s average four-quarter positive surprise is 2.83%, having beaten estimates thrice.
Moreover, the company is actively pursuing lean initiatives to reduce cycle times and wastage. EnerSys has plans to improve operating margins by 200 basis points by the end of 2021, driven by organic growth and savings generated from its comprehensive operating structure — EnerSys Operating System.
Other Stocks to Consider
Other top-ranked stocks in the industry include Harsco Corporation HSC, Rexnord Corporation RXN and RBC Bearings Incorporated ROLL. While Harsco sports a Zacks Rank #1, Rexnord and RBC Bearings carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Harsco surpassed estimates in each of the trailing four quarters, the average earnings surprise being 13.58%.
Rexnord outpaced estimates in each of the preceding four quarters, the average positive surprise being 17.71%.
RBC Bearings exceeded estimates thrice in the last four quarters, the average beat being 10.30%.
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