Have you been paying attention to shares of EnerSys (ENS)? Shares have been on the move with the stock up 15% over the past month. The stock hit a new 52-week high of $244.3 in the previous session. EnerSys has gained 62.8% since the start of the year compared to the 11.4% move for the Zacks Industrial Products sector and the 15% return for the Zacks Manufacturing - Electronics industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 20, 2026, EnerSys reported EPS of $3.19 versus consensus estimate of $3.
For the current fiscal year, EnerSys is expected to post earnings of $12.01 per share on $3.86 in revenues. This represents a 13.73% change in EPS on a 3% change in revenues. For the next fiscal year, the company is expected to earn $14.84 per share on $4.05 in revenues. This represents a year-over-year change of 23.61% and 4.86%, respectively.
Valuation Metrics
While EnerSys has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? 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 C. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 19.9X current fiscal year EPS estimates, which is not in-line with the peer industry average of 23.2X. On a trailing cash flow basis, the stock currently trades at 17X versus its peer group's average of 24.5X. Additionally, the stock has a PEG ratio of 1.33. 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 #2 (Buy) thanks to rising earnings estimates.
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 meets the list of requirements. 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).