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Is Enersys (ENS) a Great Value Stock Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Enersys (ENS - Free Report) . ENS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 11.05, while its industry has an average P/E of 25.30. Over the past 52 weeks, ENS's Forward P/E has been as high as 17.12 and as low as 9.92, with a median of 11.17.

We should also highlight that ENS has a P/B ratio of 2.30. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 4.23. Over the past year, ENS's P/B has been as high as 2.75 and as low as 2.05, with a median of 2.29.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ENS has a P/S ratio of 1.18. This compares to its industry's average P/S of 2.97.

Finally, investors should note that ENS has a P/CF ratio of 11.41. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. ENS's current P/CF looks attractive when compared to its industry's average P/CF of 11.98. Over the past year, ENS's P/CF has been as high as 15.61 and as low as 9.90, with a median of 11.29.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Enersys is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ENS feels like a great value stock at the moment.


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