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Are Investors Undervaluing Enersys (ENS) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Enersys (ENS - Free Report) . ENS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 10.42. This compares to its industry's average Forward P/E of 22.67. Over the past year, ENS's Forward P/E has been as high as 12.63 and as low as 9.92, with a median of 11.01.

Investors should also recognize that ENS has a P/B ratio of 2.17. 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 solid versus its industry's average P/B of 3.99. ENS's P/B has been as high as 2.56 and as low as 2.05, with a median of 2.23, over the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ENS has a P/S ratio of 1.13. This compares to its industry's average P/S of 2.97.

Finally, investors will want to recognize that ENS has a P/CF ratio of 10.98. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. ENS's P/CF compares to its industry's average P/CF of 31.51. Within the past 12 months, ENS's P/CF has been as high as 13.52 and as low as 9.90, with a median of 11.07.

These are just a handful of the figures considered in Enersys's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ENS is an impressive value stock right now.


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