For Immediate Release
Chicago, IL – August 24, 2026 – Zacks Equity Research shares EnerSys ENS as the Bull of the Day and AECOM ACM as the Bear of the Day. In addition, Zacks Equity Research provides analysis on NVIDIA Corporation’s NVDA, Advanced Micro Devices, Inc. AMD.
Here is a synopsis of all five stocks:
Bull of the Day:
EnerSys is seeing strong energy solutions demand thanks to data center and other mission critical needs. This Zacks Rank #1 (Strong Buy) is expected to grow earnings by 27% in fiscal 2027.
EnerSys is headquartered in Reading, PA and operates in stored energy solutions helping industrial, infrastructure and defense customers address critical power and operational needs.
It supports customers across key mission critical areas including communications networks, data centers, energy infrastructure, material handling, transportation, and aerospace and defense.
EnerSys serves customers in more than 100 countries. It has a market cap of $6.9 billion.
EnerSys Beats on Earnings Again in the Fiscal 2027 First Quarter
On Aug 12, 2026, EnerSys reported its first quarter fiscal 2027 results and beat the Zacks Consensus by $0.84. Earnings were $3.66 compared to the Zacks Consensus of $2.82.
EnerSys is an earnings all-star. It has only missed on the Zacks Consensus one time in the last 5 years and that was all the way back in 2021. It has beat on earnings 19 quarters in a row.
That’s an impressive earnings surprise track record.
Net sales were up 5% to $936 million. It saw a big jump in gross margin, up 510 basis points, to 33.5%.
The company was a beneficiary of the tariff refunds, realizing $30.9 million in the quarter. If you strip out the one-time refund, earnings were still up 42% year-over-year.
“Momentum across data centers, communications, and aerospace & defense is generating strong sales growth and margin expansion, offsetting the delayed recovery of material handling demand, and enabling another record first quarter result,” said Shawn O’Connell, President and CEO.
EnerSys Gives Bullish Fiscal Second Quarter 2027 Guidance
EnerSys is bullish about the outlook in the fiscal second quarter.
“Our second quarter outlook reflects continued strength across Data Centers, Communications, and Aerospace and Defense, as well as early recovery in Transportation,” said Andrea Funk, CFO.
The company also expects earnings growth to be from margin expansion in the first half of the fiscal year but with a shift to higher top line growth towards the end of fiscal 2027.
The company guided fiscal second quarter 2027 earnings above the Zacks Consensus in the range of $3.15 to $3.25. The Zacks Consensus had been looking for $3.01.
Analysts Raise EnerSys Estimates for the Full Year
Given the big earnings beat and guide for Q2 that was higher than the consensus, it’s not a surprise that analysts have raised their fiscal 2027 full year earnings estimates.
Two estimates were raised in the last week, pushing the Zacks Consensus up to $13.41 from $12.37 before the earnings report.
This is earnings growth of 27% as the company made only $10.56 in fiscal 2026.
One estimate was also revised higher for fiscal 2028 in the last week as well, pushing up the Zacks Consensus to $15.10. That’s another 12.6% earnings growth.
What it looks like now on the five-year price and consensus chart.
The Stock Takes a Time Out: A Buying Opportunity?
Shares of EnerSys have soared over the last year, gaining 93% during that period, as the AI infrastructure plays were hot. But in the last 3 months, the AI infrastructure trade has cooled off.
EnerSys shares are down 18.9% in this period.
But they are getting cheaper on a fundamental basis. EnerSys now trades with a forward price-to-earnings (P/E) ratio of 14.2. A P/E ratio under 15 usually indicates a company is undervalued.
EnerSys also has a PEG ratio of 0.9. A PEG is the P/E ratio divided by growth. A PEG ratio under 1.0 usually means a company has both value and growth. This is a rare combination.
EnerSys is also shareholder friendly. On Aug 12, 2026, the Board declared a 10% increase to the company’s quarterly dividend to $0.2875 per share. That’s an annual dividend of $1.05 which is yielding 0.6%.
It’s payable on Oct 2, 2026, to holders of record as of Sep 18, 2026.
The company also has a share buyback program and repurchased $50 million in shares in the fiscal first quarter of 2027.
For investors looking for a way to play energy solutions during the AI Revolution, but want to get it cheap, EnerSys should be on your short list.
Bear of the Day:
AECOM posted a record backlog in the second quarter of 2026 but a surprise tax loss has led to big earnings cuts. This Zacks Rank #5 (Strong Sell) is now expected to see an earnings decline in 2026.
AECOM is an infrastructure professional services firm in water, environment, energy, transportation, and buildings.
The company partners with public – and private- sector clients to create solutions from advisory, planning, design and engineering to program and construction management. It operates worldwide.
AECOM Misses Big on Earnings in the Fiscal Third Quarter of 2026
On Aug 10, 2026, AECOM reported its fiscal third quarter 2026 results and missed on the Zacks Consensus Estimate by $1.99. Earnings were a loss of $0.50 versus the consensus of $1.49.
The big surprise was in a $337 million pre-tax charge due to higher projected costs to complete a Construction Management project.
That project was awarded in 2019 under terms and conditions that would not be acceptable after the substantial changes AECOM implemented to its risk policies several years ago.
But the damage was done even though the backlog was up 13% to a new record driven by a record $4.2 billion in wins.
The design pipeline also increased again to a new all-time high.
Analysts Cut AECOM’s Earnings Estimates for Fiscal 2026 and 2027
With that big of an earnings miss in the third quarter, it’s not a surprise that the analysts cut their fiscal 2026 earnings estimates as well.
Three estimates were cut for 2026 in the last month, pushing down the Zacks Consensus to $4.48 from $5.97. That’s an earnings decline of 14.8% as the company made $5.26 last year.
Analysts were also bearish on fiscal 2027. Four estimates were cut for next year in the last month, pushing down the Zacks Consensus Estimate to $6.05 from $6.76. However, they do have AECOM returning to earnings growth of 35% in fiscal 2027.
Here’s what it looks like on the price and consensus chart.
Shares of AECOM Sink
The Street didn’t like the pre-tax loss surprise so the shares sold off on the news. But they had already been falling prior to the earnings report.
Over the last year AECOM fell 46.7% and it is trading near 5-year lows.
Is it cheap?
AECOM trades with a forward price-to-earnings (P/E) ratio of 14.5. A P/E ratio under 15 usually indicates a company is undervalued.
It also has a price-to-sales (P/S) ratio of 0.5. A P/S of 1.0 or less usually indicates a company has value. An investor is buying every $1.00 of sales for just $0.50.
But investors interested in AECOM might want to wait to make sure next year’s earnings turnaround is for real before buying in. Watch for positive earnings estimate revisions.
Additional content:
NVIDIA Earnings Wednesday: Buy, Sell or Hold?
NVIDIA Corporation’s much-awaited fiscal 2027 second-quarter earnings (ended July 26) are set to be reported after the closing bell on Aug. 26.
The results come at a critical juncture for the Jensen Huang-led company, as investors weigh concerns over a possible slowdown in artificial intelligence (AI) spending, ongoing export restrictions on the sale of advanced chips to China, and stiff competition from rivals such as Advanced Micro Devices, Inc.
Therefore, as the earnings date approaches, investors should carefully consider their strategy and assess whether to buy, hold, or sell the NVDA stock. So, what should be their course of action ahead of the earnings report? Let’s take a closer look –
NVIDIA Poised for Another Blowout Quarter: What to Expect
In the fiscal first quarter of 2027, NVIDIA reported revenues of $81.6 billion, up 85% year over year and 20% sequentially, according to the company’s May 20 press release. Data Center revenues in particular reached a record $75.2 billion, up 92% year over year and 21% quarter over quarter.
The robust demand for NVIDIA’s cutting-edge AI chips and computing platforms fueled strong top-line growth in the fiscal first quarter and is expected to remain a key growth catalyst in the fiscal second quarter. The Data Center business continues to benefit as major cloud providers ramp up capital spending on AI infrastructure and expand their deployment of NVIDIA’s graphics processing units (GPUs).
Against this backdrop, NVIDIA expects revenues for the fiscal second quarter to reach $91 billion, plus or minus 2%, broadly in line with the Zacks Consensus Estimate of $91.8 billion. The revenue outlook reflects continued strong AI demand.
Furthermore, NVIDIA’s management expects the company to maintain strong profitability along with revenue growth. In the fiscal second quarter, NVIDIA projects a non-GAAP gross margin of 75%, plus or minus 0.5%, broadly in line with the 75% margin reported in the fiscal first quarter.
Additionally, the Zacks Consensus Estimate for NVIDIA’s fiscal second-quarter earnings per share (EPS) is $2.09, representing a 99.1% year-over-year increase. NVIDIA’s trailing four-quarter earnings surprise, on average, is a positive 5.5%, suggesting that the stock has a track record of surpassing consensus estimates.
NVIDIA Stock Ahead of Q2 Earnings: Buy, Hold or Sell?
Strong AI demand, robust revenue outlook, and sustained gross margin point to a strong fiscal second quarter for NVIDIA, with EPS growth projected to be almost double year over year.
Most importantly, the company’s striking revenue growth projection excludes Chinese Data Center compute revenue, underscoring management’s confidence in achieving strong growth despite ongoing export restrictions.
Thus, the company’s underlying strength reinforces the long-term investment case for NVIDIA, even if the stock faces short-term volatility following the earnings report. In fact, NVIDIA’s strong fundamentals and AI momentum could make any potential near-term pullbacks an attractive entry point for long-term investors.
From a valuation perspective, NVIDIA also appears attractive with its forward price-to-earnings ratio of 23.86 sitting below the Semiconductor - General industry’s average of 28.06.
For now, NVIDIA has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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