Company Performance - EnerSys (ENS) shares have increased by 17.6% over the past month and reached a new 52-week high of $146.17, with a year-to-date gain of 56.6% compared to 5.3% for the Zacks Industrial Products sector and 3% for the Zacks Manufacturing - Electronics industry [1] - The company has consistently beaten earnings estimates, reporting EPS of $2.56 against a consensus estimate of $2.36 in its last earnings report [2] Earnings Projections - For the current fiscal year, EnerSys is expected to post earnings of $10.28 per share on revenues of $3.76 billion, reflecting a 1.28% change in EPS and a 3.96% change in revenues [3] - For the next fiscal year, earnings are projected to be $12.41 per share on revenues of $3.88 billion, indicating a year-over-year change of 20.72% in EPS and 3.03% in revenues [3] Valuation Metrics - EnerSys has a Value Score of B, a Growth Score of B, and a Momentum Score of C, resulting in a VGM Score of A [6] - The stock trades at 14.1X current fiscal year EPS estimates, below the peer industry average of 24.8X, and at 11.2X trailing cash flow compared to the peer group's average of 20.7X [7] - The PEG ratio stands at 0.94, indicating that while the stock is not in the top echelon from a value perspective, it remains attractive [7] Zacks Rank - EnerSys holds a Zacks Rank of 2 (Buy) due to rising earnings estimates, aligning with the recommendation for investors to select stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B [8] Industry Context - The Manufacturing - Electronics industry is positioned in the top 16% of all industries, suggesting favorable conditions for both EnerSys and its peers [11]

Core Insights - In times of market volatility, investors are increasingly turning to value investing as a strategy to capitalize on discounted stock prices when others are selling [1][3] Value Investment Strategy - Value investing allows investors to purchase stocks at lower prices during market uncertainty, presenting opportunities for long-term gains [1] - The strategy can lead to "value traps" if not properly understood, where stocks underperform due to persistent issues rather than temporary setbacks [3] Importance of PEG Ratio - The PEG ratio, defined as (Price/Earnings)/Earnings Growth Rate, is a crucial metric for value investors, with a lower PEG ratio indicating better value [5] - The PEG ratio helps identify intrinsic stock value, although it has limitations, such as not accounting for changing growth rates over time [5] Screening Criteria for Value Stocks - Effective screening for value stocks includes criteria such as a PEG ratio less than the industry median, a P/E ratio below the industry median, and a Zacks Rank of 1 or 2 [6] - Additional criteria include a market capitalization greater than $1 billion, an average 20-day trading volume exceeding 50,000, and upward revisions in earnings estimates by more than 5% [6] Selected Value Stocks - The Allstate Corporation (ALL), Telefonica, S.A. (TEF), Enersys (ENS), and Commercial Metals Co. (CMC) are highlighted as low-PEG value stocks that meet strict screening criteria [7] - Each of these companies demonstrates a combination of discounted valuation, solid growth metrics, and strong Style Scores, along with rising earnings estimates [7] Company Profiles - **Allstate Corporation (ALL)**: The third-largest property-casualty insurer in the U.S. with a five-year expected growth rate of 18.9% and a Zacks Rank of 1 [9][10] - **Telefonica, S.A. (TEF)**: A major telecommunications provider in Europe and Latin America, with a five-year expected growth rate of 28.1% and a Zacks Rank of 2 [10][11] - **Enersys (ENS)**: Engaged in manufacturing industrial batteries, with a long-term historical growth rate of 16.5% and a Zacks Rank of 2 [11][12] - **Commercial Metals Co. (CMC)**: A manufacturer and recycler of steel products, boasting a five-year expected growth rate of 25.6% and a Zacks Rank of 1 [13][14]

Core Insights - Investors primarily utilize price-to-earnings (P/E) and price-to-sales (P/S) ratios for stock evaluation, while the price-to-book (P/B) ratio serves as an additional metric for identifying undervalued stocks with growth potential [1][5][10] Group 1: P/B Ratio and Its Importance - The P/B ratio is defined as the ratio of stock price to book value, calculated as market capitalization divided by book value of equity [2] - A P/B ratio of less than one indicates that a stock is trading below its book value, suggesting it may be undervalued and a good buy [5] - Conversely, a P/B ratio greater than one suggests the stock may be overvalued [5][6] Group 2: Book Value Definition - Book value represents the total value remaining for shareholders if a company were to liquidate its assets after settling all liabilities [3] - It is calculated by subtracting total liabilities from total assets, equating to common stockholders' equity on the balance sheet [4] Group 3: Limitations of P/B Ratio - The P/B ratio is particularly useful for industries with tangible assets, such as finance and manufacturing, but may be misleading for companies with high R&D expenses or significant debt [8] - A low P/B ratio could indicate weak asset returns or overstated assets, while a high P/B may suggest a company is a takeover target [7] Group 4: Stocks with Low P/B Ratios - StoneCo (STNE) has a low P/B ratio with a projected 3-5 year EPS growth rate of 30.3% and a Zacks Rank of 2 [9][15] - Great Lakes Dredge & Dock (GLDD) also features a low P/B ratio with a projected EPS growth rate of 12.0% and a Zacks Rank of 1 [9][16] - Keros Therapeutics (KROS) is highlighted with a projected EPS growth rate of 23.6% and a Zacks Rank of 1 [9][20] Group 5: Screening Parameters for Investment - Screening for stocks involves comparing P/B, P/S, and P/E ratios against industry medians to identify attractive investment opportunities [11][12][13] - A PEG ratio of less than 1 indicates undervaluation relative to future growth prospects [13] - Stocks should have a minimum trading price of $5 and a substantial average trading volume for liquidity [14]

Market Overview - Major U.S. indices rose before Thanksgiving, with the Dow Jones Industrial Average gaining 314.67 points to close at 47,427.12, the S&P 500 increasing by 46.73 points to settle at 6,812.61, and the Nasdaq Composite outperforming with a gain of 0.82% to finish at 23,214.69 [1] Federal Reserve Policy Impact - Market momentum was driven by shifting expectations regarding Federal Reserve policy, with growing confidence that interest rate cuts may occur as soon as next month, fostering optimism [2] - Easing concerns about an overvalued artificial intelligence sector contributed to improved market sentiment [2] Value Stocks Opportunity - Value stocks are seen as appealing due to the potential benefits of lower borrowing costs for companies with stable earnings and discounted valuations [2] - The Price to Cash Flow (P/CF) ratio is highlighted as an effective valuation metric for evaluating value stocks, indicating better value when lower [3][4] Financial Health Indicators - P/CF stands out because it reflects a company's financial health by adding back non-cash charges to net income, making it a more reliable measure than earnings, which can be subject to manipulation [4][5] - Positive cash flow indicates increased liquid assets, allowing companies to manage debt, expenses, and reinvestment, while negative cash flow suggests declining liquidity [6] Value Investing Strategy - A comprehensive investment strategy should include multiple metrics such as price-to-book, price-to-earnings, and price-to-sales ratios, along with a favorable Zacks Rank and Value Score to avoid value traps [7] - Parameters for selecting true-value stocks include a P/CF ratio less than or equal to the industry median, a minimum stock price of $5, and an average 20-day trading volume greater than 100,000 [8] Highlighted Value Stocks - Four value stocks with low P/CF ratios were identified: Great Lakes Dredge & Dock Corporation (GLDD), StoneCo Ltd. (STNE), PG&E Corporation (PCG), and EnerSys (ENS), all showing year-over-year sales and EPS growth projections [9] - Each of these stocks holds a Value Score of A or B and ranks in the top two Zacks Ranks, indicating strong potential [9] Company-Specific Insights - Great Lakes Dredge & Dock (GLDD) has a trailing four-quarter earnings surprise of 65.5% and is projected to see sales and EPS growth of 11.6% and 31%, respectively [12][13] - StoneCo (STNE) has a trailing earnings surprise of 9.1% and is expected to grow sales and EPS by 12.7% and 27.4%, respectively, with shares having rallied 68% in the past year [13][14] - PG&E Corporation (PCG) has a trailing earnings surprise of 0.5% and is projected for sales and EPS growth of 6.7% and 10.3%, respectively, although shares have declined 26% in the past year [14][15] - EnerSys (ENS) has a trailing earnings surprise of 4.9% and is expected to see sales and EPS growth of 4% and 1.3%, respectively, with shares surging 47.8% in the past year [15][16]

Company Overview - EnerSys is part of the Industrial Products group, which consists of 186 companies and is currently ranked 10 in the Zacks Sector Rank [2] - EnerSys has a Zacks Rank of 2 (Buy), indicating a favorable outlook based on earnings estimate revisions [3] Performance Metrics - The Zacks Consensus Estimate for EnerSys' full-year earnings has increased by 5.3% over the past quarter, reflecting improved analyst sentiment [4] - EnerSys has gained approximately 52.7% year-to-date, significantly outperforming the average gain of 5.7% for the Industrial Products sector [4] Industry Comparison - EnerSys belongs to the Manufacturing - Electronics industry, which includes 15 companies and is currently ranked 28 in the Zacks Industry Rank; this industry has gained an average of 3.3% this year [6] - In contrast, Mitsui & Co., another outperforming stock in the Industrial Products sector, is part of the Metal Products - Distribution industry, which has seen a 12% increase this year and is ranked 5 [6] Investment Outlook - Investors interested in Industrial Products stocks should monitor EnerSys and Mitsui & Co. for their continued strong performance [7]

Core Insights - Wall Street experienced a rebound on November 21, 2025, with all three major stock indices rising nearly 1% due to investor optimism about a potential rate cut in December following dovish comments from John Williams, president of the Federal Reserve Bank of New York [1] Market Conditions - Despite the rebound, concerns over overvalued AI stocks persist, which could lead to a sell-off in the broader market at any time [2] Investment Strategy - In the current unstable environment, equity investors are advised to avoid high-priced stocks and consider dividend-growth stocks, as these companies typically exhibit strong financial health and provide a defensive hedge against economic uncertainty [3][5] - Dividend-growth stocks are characterized by a history of increasing dividends, which offers downside protection and potential for capital appreciation [5][6] Selected Dividend Growth Stocks - Five dividend growth stocks identified as solid choices include: - **Cardinal Health (CAH)**: Expected fiscal 2026 revenue growth of 16.2%, long-term earnings growth rate of 13.9%, and an annual dividend yield of 0.98% [12][13] - **Barrick Mining (B)**: Projected 2025 revenue growth of 21.5%, long-term earnings growth rate of 38.4%, and an annual dividend yield of 1.64% [14] - **NetEase (NTES)**: Anticipated 2025 revenue growth of 10.4%, long-term earnings growth rate of 9.9%, and an annual dividend yield of 1.70% [15] - **Lam Research (LRCX)**: Expected fiscal 2026 revenue growth of 14.1%, long-term earnings growth rate of 20.3%, and an annual dividend yield of 0.73% [16] - **Enersys (ENS)**: Projected fiscal 2026 revenue growth of 4%, long-term earnings growth rate of 15%, and an annual dividend yield of 0.76% [17] Selection Criteria - The selection of these stocks is based on criteria such as multi-year growth in dividends, sales, earnings per share (EPS), and undervaluation metrics [10][11] - Stocks selected have shown historical growth in dividends, sales, and EPS, indicating strong fundamentals and potential for sustained dividend payments [8][9]

Group 1 - The research focuses on identifying setups with asymmetrical risk/reward profiles within five key market themes: Artificial Intelligence/Semiconductors, Infrastructure/Logistics/Energy Transition, Financial/Fintech, Healthcare/Biotech, and Weapons & Space [1] - The investment style combines deep value investing principles with complex growth projections supported by quantitative research and machine learning skills [1] - The aim is to provide valuable perspectives and foster a community of investors who can share knowledge and insights [1]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores serve as complementary indicators to the Zacks Rank, aiding in stock selection with high potential for market outperformance [2] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum, with higher scores indicating better chances of outperforming the market [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - Focuses on identifying undervalued stocks using financial ratios like P/E, PEG, and Price/Sales [3] Growth Score - Concentrates on a company's financial health and future growth potential, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - Targets stocks with upward or downward price trends, utilizing factors like one-week price change and monthly earnings estimate changes [5] VGM Score - Combines all three Style Scores to highlight stocks with attractive value, strong growth forecasts, and promising momentum [6] Zacks Rank Integration - The Zacks Rank uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [7][8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [9] Stock Highlight: EnerSys (ENS) - EnerSys, based in Pennsylvania, specializes in manufacturing and distributing industrial batteries and related products, holding a Zacks Rank of 2 (Buy) with a VGM Score of A [11] - The company is projected to experience year-over-year earnings growth of 1.3% for the current fiscal year, with upward revisions in earnings estimates [12]

Core Viewpoint - EnerSys (ENS) has shown strong stock performance, with a 14.2% increase over the past month and a 50.2% gain since the beginning of the year, outperforming both the Zacks Industrial Products sector and the Zacks Manufacturing - Electronics industry [1] Financial Performance - EnerSys reported earnings per share (EPS) of $2.56 in its last earnings report, exceeding the consensus estimate of $2.36 [2] - For the current fiscal year, EnerSys is projected to achieve earnings of $10.28 per share on revenues of $3.76 billion, reflecting a 1.28% change in EPS and a 3.96% change in revenues [3] - The next fiscal year is expected to see earnings of $12.41 per share on revenues of $3.88 billion, indicating a year-over-year change of 20.72% in EPS and 3.03% in revenues [3] Valuation Metrics - EnerSys has a Value Score of A, with Growth and Momentum Scores of B, resulting in a combined VGM Score of A [6] - The stock trades at 13.5 times the current fiscal year EPS estimates, significantly lower than the peer industry average of 25.7 times [7] - On a trailing cash flow basis, EnerSys trades at 10.7 times compared to the peer group's average of 23.8 times, and it has a PEG ratio of 0.9, positioning it favorably for value investors [7] Zacks Rank - EnerSys holds a Zacks Rank of 2 (Buy), supported by rising earnings estimates, making it a suitable choice for investors looking for stocks with strong potential [8] Industry Comparison - Vestas Wind Systems AS (VWDRY) is a notable peer in the industry, also holding a Zacks Rank of 2 (Buy) and demonstrating strong earnings performance [9] - VWDRY is expected to post earnings of $0.41 per share on revenues of $22.02 billion for the current fiscal year, having beaten consensus estimates by 71.43% last quarter [10] - The Manufacturing - Electronics industry is performing well, ranking in the top 13% of all industries, providing favorable conditions for both ENS and VWDRY [11]

Core Insights - Value investors traditionally use the price-to-earnings (P/E) ratio to identify value stocks, but for loss-making companies, the price-to-sales (P/S) ratio is more relevant. The price-to-book (P/B) ratio is also a useful tool for identifying undervalued stocks with high return potential [1][5][9]. Valuation Ratios - The P/B ratio is calculated as market capitalization divided by book value of equity, helping to identify low-priced stocks with high growth prospects [2][5]. - A P/B ratio of less than one indicates that a stock is trading below its book value, suggesting it may be undervalued, while a ratio above one may indicate overvaluation [5][6]. - The P/B ratio is particularly useful for industries with tangible assets, such as finance and manufacturing, but can be misleading for companies with high R&D expenses or significant debt [8]. Book Value Definition - Book value represents the total value remaining for shareholders if a company were to liquidate its assets after settling all liabilities, calculated by subtracting total liabilities from total assets [3][4]. Screening Parameters - Stocks with a P/B ratio lower than the industry median are considered to have potential for price appreciation [11]. - Additional screening criteria include a P/S ratio below the industry median, a P/E ratio below the industry median, a PEG ratio less than 1, a current price of at least $5, an average 20-day volume of at least 100,000, and a Zacks Rank of 1 or 2 [12][13][14]. Selected Stocks - Five stocks identified with low P/B ratios and solid growth potential include: - **StoneCo (STNE)**: Financial technology solutions provider with a projected 3-5 year EPS growth rate of 30.3% and a Zacks Rank of 2 [15]. - **Great Lakes Dredge & Dock (GLDD)**: Largest U.S. dredging services provider with a projected EPS growth rate of 12.0% and a Zacks Rank of 1 [16]. - **EnerSys (ENS)**: Manufacturer of industrial batteries with a projected EPS growth rate of 15.0% and a Zacks Rank of 2 [17]. - **MillerKnoll (MLKN)**: Design solutions provider with a projected EPS growth rate of 12.0% and a Zacks Rank of 2 [17]. - **Keros Therapeutics (KROS)**: Clinical-stage biotech with a projected EPS growth rate of 23.6% and a Zacks Rank of 1 [18].