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Here's Why Hold Strategy is Apt for EnerSys (ENS) Stock Now
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EnerSys (ENS - Free Report) is backed by multiple tailwinds despite the high cost of sales and operating expenses, supply-chain issues and foreign currency headwinds.
This Zacks Rank #3 (Hold) company is benefiting from solid product offerings, a firm focus on product innovation (including lithium, Touch-Safe, CPUC and DC fast charge) and robust demand.
Its Energy Systems segment is gaining from robust broadband and data center businesses as well as favorable pricing actions. Strong electrification and automation end market demand is driving its Motive Power segment. 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 also bode well for the company.
A solid product portfolio is supporting EnerSys’ growth. The company strengthened its position as a leading provider of NexSys Thin Plate Pure Lead (TPPL) products. ENS 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’ measures to reward its shareholders handsomely through dividend payments raise its appeal. In the first six months of fiscal 2023 (ended Oct 2, 2022), it paid out dividends worth $14.2 million. The company also bought back shares worth $22.9 million in the same time period. In March 2022, EnerSys announced a share repurchase program worth $150 million which has no expiration date. ENS was left to repurchase shares worth $185 million in aggregate while exiting the second quarter of fiscal 2023.
Image Source: Zacks Investment Research
In the past six months, the stock has rallied 38.8% compared with the industry’s 22.1% increase.
Stocks to Consider
Some better-ranked companies from the Industrial Products sector are discussed below:
Image: Bigstock
Here's Why Hold Strategy is Apt for EnerSys (ENS) Stock Now
EnerSys (ENS - Free Report) is backed by multiple tailwinds despite the high cost of sales and operating expenses, supply-chain issues and foreign currency headwinds.
This Zacks Rank #3 (Hold) company is benefiting from solid product offerings, a firm focus on product innovation (including lithium, Touch-Safe, CPUC and DC fast charge) and robust demand.
Its Energy Systems segment is gaining from robust broadband and data center businesses as well as favorable pricing actions. Strong electrification and automation end market demand is driving its Motive Power segment. 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 also bode well for the company.
A solid product portfolio is supporting EnerSys’ growth. The company strengthened its position as a leading provider of NexSys Thin Plate Pure Lead (TPPL) products. ENS 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’ measures to reward its shareholders handsomely through dividend payments raise its appeal. In the first six months of fiscal 2023 (ended Oct 2, 2022), it paid out dividends worth $14.2 million. The company also bought back shares worth $22.9 million in the same time period. In March 2022, EnerSys announced a share repurchase program worth $150 million which has no expiration date. ENS was left to repurchase shares worth $185 million in aggregate while exiting the second quarter of fiscal 2023.
Image Source: Zacks Investment Research
In the past six months, the stock has rallied 38.8% compared with the industry’s 22.1% increase.
Stocks to Consider
Some better-ranked companies from the Industrial Products sector are discussed below:
Xylem Inc. (XYL - Free Report) presently sports a Zacks Rank #1 (Strong Buy). XYL’s earnings surprise in the last four quarters was 13.3%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.
In the past 60 days, Xylem’s earnings estimates have increased 0.1% for 2022. The stock has gained 54.1% in the past six months.
MRC Global Inc. (MRC - Free Report) presently has a Zacks Rank #2 (Buy). MRC’s earnings surprise in the last four quarters was 103%, on average.
In the past 60 days, MRC Global’s earnings estimates have increased 0.1% for 2022. The stock has gained 17.5% in the past six months.
IDEX Corporation (IEX - Free Report) presently has a Zacks Rank 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 0.1% for 2022. The stock has rallied 4.1% in the past year