Here's Why EnerSys (ENS) Gained But Lagged the Market Today
EnerSys (ENS) ended the recent trading session at $97.14, demonstrating a +0.56% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.88%. On the other hand, the Dow registered a gain of 0.54%, and the technology-centric Nasdaq increased by 1.35%.
Heading into today, shares of the maker of industrial batteries had lost 2.61% over the past month, lagging the Industrial Products sector's loss of 1.95% and the S&P 500's gain of 0.64% in that time.
Analysts and investors alike will be keeping a close eye on the performance of EnerSys in its upcoming earnings disclosure. The company's earnings report is set to go public on February 7, 2024. The company is forecasted to report an EPS of $2.32, showcasing an 82.68% upward movement from the corresponding quarter of the prior 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.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.23 per share and a revenue of $3.66 billion, indicating changes of +54.12% and -1.19%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for EnerSys. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 8.29% upward. EnerSys currently has a Zacks Rank of #1 (Strong Buy).
In the context of valuation, EnerSys is at present trading with a Forward P/E ratio of 11.74. Its industry sports an average Forward P/E of 20.23, so one might conclude that EnerSys is trading at a discount comparatively.
It is also worth noting that ENS currently has a PEG ratio of 0.84. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Manufacturing - Electronics industry had an average PEG ratio of 1.79 as trading concluded yesterday.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 15, finds itself in the top 6% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Enersys (ENS) : Free Stock Analysis Report
