Yahoo Finance Should Value Investors Buy Enersys (ENS) Stock?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Enersys (ENS) is a stock many investors are watching right now. ENS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.47, while its industry has an average P/E of 24.75. 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 11.21.
We should also highlight that ENS has a P/B ratio of 2.37. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. ENS's current P/B looks attractive when compared to its industry's average P/B of 4.05. ENS's P/B has been as high as 2.75 and as low as 2.05, with a median of 2.29, 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. 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 1.16. This compares to its industry's average P/S of 2.74.
Finally, investors should note that ENS has a P/CF ratio of 11.73. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. ENS's current P/CF looks attractive when compared to its industry's average P/CF of 11.90. ENS's P/CF has been as high as 16.68 and as low as 9.90, with a median of 11.29, all within the past year.
These are only a few of the key metrics included in Enersys's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ENS looks like an impressive value stock at the moment.
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Enersys (ENS) : Free Stock Analysis Report
