Back to top

Image: Bigstock

EnerSys (ENS) Shares Up 29% in 6 Months: What's Driving It?

Read MoreHide Full Article

EnerSys (ENS - Free Report) appears in good shape, with its shares having rallied 29% over the past six months compared with the industry’s 20.7% increase.

Catalysts Behind the Price Surge

EnerSys is benefiting from its diversified end markets. Also, the company’s solid product offerings and firm focus on product innovation bode well.

Robust broadband and data center businesses as well as favorable pricing actions are driving ENS Energy Systems’ revenues. Its Motive Power segment is gaining from strong electrification and automation end market demand. The customer wins in Powersport and the next-gen Air Mobility Platform are driving growth for the Specialty segment. Technological expertise and effective pricing policies are other tailwinds for the company.

Zacks Investment Research
Image Source: Zacks Investment Research

EnerSys’ solid product portfolio is an added advantage. ENS strengthened its position as a leading provider of NexSys Thin Plate Pure Lead (TPPL) products. The company is also benefiting from favorable trends, including rural broadband, home energy storage, 5G buildout and EV charging, which will likely be favorable in the long term as well.

EnerSys utilizes its cash flow to reward its shareholders through dividend payouts and share-repurchase programs. ENS paid out dividends worth $14.2 million and bought back shares worth $22.9 million in the first six months of fiscal 2023 (ended Oct 2, 2022). In March 2022, EnerSys announced a share repurchase program worth $150 million which has no expiration date. While exiting the second quarter of fiscal 2023, ENS was left to repurchase shares worth $185 million in aggregate.

Zacks Rank & Stocks to Consider

EnerSys carries a Zacks Rank #2 (Buy) at present. Some other top-ranked companies from the Industrial Products sector are discussed below:

Applied Industrial Technologies, Inc. (AIT - Free Report) presently has a Zacks Rank #1 (Strong Buy) and a trailing four-quarter earnings surprise of 24.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.

AIT’s earnings estimates have increased 4.6% for fiscal 2023 in the past 60 days. Shares of Applied Industrial have risen 37.6% in the past six months.

IDEX Corporation (IEX - Free Report) presently has a Zacks Rank of of 2. IEX’s earnings surprise in the last four quarters was 5.7%, on average.

In the past 60 days, IDEX’s earnings estimates have increased 1.8% for 2022. The stock has rallied 32.7% in the past six months.

Allegion plc (ALLE - Free Report) delivered an average four-quarter earnings surprise of 8.8%. ALLE presently carries a Zacks Rank of 2.

ALLE’s earnings estimates have increased 1.5% for 2022 in the past 60 days. The stock has gained 10.5% in the past six months.

Published in