EnerSys ENS is benefiting from a healthy business across its well-diversified end markets despite supply-chain challenges, and increasing costs and forex woes. Its Energy Systems revenues are driven by product innovations like 5G, CPUC and other projects along with customer wins.
Strong demand in electrification and automation end markets is driving growth for the Motive Power segment, and solid momentum in the aerospace and defense end markets is aiding the Specialty segment’s revenues. Technological expertise and effective pricing policies are likely to support ENS’ performance in the near term.
EnerSys’ solid product portfolio is likely to make it more competent in the quarters ahead. ENS is expected to benefit from favorable trends, including home energy storage, EV charging, rural broadband and 5G buildout products in the long term.
EnerSys’ shareholder-friendly policies hold promise. ENS paid out dividends worth $7.1 million and bought back shares worth $22.9 million in the first three months of fiscal 2023 (ended Jun 30, 2022). While exiting the first quarter of fiscal 2023, ENS was left to repurchase shares worth $190 million in aggregate.
Enersys Price and Consensus
Considering the above-mentioned positives, we believe, investors should retain the EnerSys stock for now, as is suggested by its current Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked companies from the Industrial Products sector are discussed below:
RBC Bearings Incorporated ROLL presently sports a Zacks Rank #1 (Strong Buy). ROLL delivered a trailing four-quarter earnings surprise of 9.4%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.
ROLL’s earnings estimates have increased 32.7% for fiscal 2023 (ending March 2023) in the past 60 days. Its shares have gained 12.2% in the past six months.
Valmont Industries, Inc. VMI presently has a Zacks Rank #2 (Buy). VMI’s earnings surprise in the last four quarters was 13.7%, on average.
In the past 60 days, Valmont’s earnings estimates have increased 0.1% for 2022. The stock has rallied 9.8% in the past six months.
Greif, Inc. GEF presently has a Zacks Rank of 2. GEF delivered a trailing four-quarter earnings surprise of 22.4%, on average.
GEF’s earnings estimates have increased 4.6% for fiscal 2022 (ending October 2022) in the past 60 days. Its shares have risen 0.1% in the past six months.
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Valmont Industries, Inc. (VMI): Free Stock Analysis Report
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Enersys (ENS): Free Stock Analysis Report
RBC Bearings Incorporated (ROLL): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.