Have you been paying attention to shares of EnerSys (ENS)? Shares have been on the move with the stock up 5.3% over the past month. The stock hit a new 52-week high of $156.21 in the previous session. EnerSys has gained 5.6% since the start of the year compared to the 9% move for the Zacks Industrial Products sector and the 4.6% return for the Zacks Manufacturing - Electronics industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on November 5, 2025, EnerSys reported EPS of $2.56 versus consensus estimate of $2.36.
For the current fiscal year, EnerSys is expected to post earnings of $10.28 per share on $3.76 in revenues. This represents a 1.28% change in EPS on a 3.96% change in revenues. For the next fiscal year, the company is expected to earn $12.41 per share on $3.88 in revenues. This represents a year-over-year change of 20.72% and 3.03%, respectively.
Valuation Metrics
Though EnerSys has recently hit a 52-week high, what is next for EnerSys? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
EnerSys has a Value Score of B. The stock's Growth and Momentum Scores are C and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 15.1X current fiscal year EPS estimates, which is not in-line with the peer industry average of 23.5X. On a trailing cash flow basis, the stock currently trades at 11.9X versus its peer group's average of 23.2X. Additionally, the stock has a PEG ratio of 1. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, EnerSys currently has a Zacks Rank of #1 (Strong Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if EnerSys passes the test. Thus, it seems as though EnerSys shares could have a bit more room to run in the near term.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
