Market Overview - The U.S. stock market is experiencing a strong bull run, driven by economic resilience and increased CEO confidence, which reached an index of 60 in Q1 2025, indicating "confident optimism" [1] - The economy expanded by 2.8% in Q4 2024, supported by a robust labor market, while a 1% rate cut by the Federal Reserve has lowered borrowing costs, promoting business expansions and consumer spending [1] - Inflation is trending towards the Fed's 2% target, leading to optimism about further monetary easing in 2025 [1] Investment Strategy - Investors are encouraged to focus on relative price strength, identifying stocks that outperform their peers as market trends strengthen [2] - High-performing stocks with strong relative price momentum are seen as advantageous in navigating the ongoing bull market [2] Recommended Stocks - **Pitney Bowes (PBI)**: Expected earnings growth of 47.6% for 2025, with a trailing four-quarter earnings surprise of approximately 96.6% and a share price increase of 177.4% over the past year [10][11] - **The Hanover Insurance Group (THG)**: Projected earnings growth of 7.7% for 2025, with a trailing four-quarter earnings surprise of about 21.7% and a share price increase of 20.2% over the past year [12][13] - **EnerSys (ENS)**: Anticipated EPS growth rate of 19.8% for fiscal 2025, with a 12.8% share price increase over the past year [14][15] - **First Financial Corporation (THFF)**: Expected earnings growth of 39% for 2025, with a share price increase of 38.6% over the past year [16][17] Screening Parameters - Stocks are screened based on relative price changes over 12 weeks, 4 weeks, and 1 week, as well as positive current-quarter estimate revisions [8] - Only Zacks Rank 1 (Strong Buy) stocks that have historically outperformed the S&P 500 are considered, with a minimum price of $5 and adequate trading volume [9][10]

TORONTO, Feb. 20, 2025 (GLOBE NEWSWIRE) -- (TSX: ENS, ENS.PR.A) E Split Corp. (the “Company”) is pleased to announce it has renewed its at-the-market equity program (“ATM Program”) that allows the Company to issue Class A and Preferred Shares (the “Class A Shares” and “Preferred Shares”, respectively) to the public from time to time, at the Company’s discretion. Any Class A Shares or Preferred Shares sold in the ATM Program will be sold through the Toronto Stock Exchange (the “TSX”) or any other marketplace ...

Market Overview - The S&P 500 reached a record high of 6,144.15, increasing by 0.24%, marking its second consecutive all-time high [1] - The Dow Jones Industrial Average rose by 0.16% to 44,627.59, while the Nasdaq Composite increased by 0.07% to 20,056.25, extending its winning streak to five sessions [1] Investor Sentiment - Investor optimism remains strong despite trade uncertainties and the Federal Reserve's cautious approach to interest rate cuts [2] - Upcoming economic data and earnings reports will be crucial in determining market direction and potential volatility [2] - Investors are advised to consider balancing portfolios with value stocks, which typically trade below intrinsic value and provide a margin of safety during market fluctuations [2] Value Stock Evaluation - The Price to Cash Flow (P/CF) ratio is highlighted as an effective valuation metric for assessing value stocks, as it reflects a company's financial health by measuring market price relative to cash flow per share [3][4] - A lower P/CF ratio indicates better value and strong cash generation potential [3] Cash Flow Importance - Positive cash flow signifies an increase in liquid assets, enabling companies to manage debt, cover expenses, reinvest, and return value to shareholders [6] - Conversely, negative cash flow indicates declining liquidity, reducing a company's operational flexibility [6] Value Investing Strategy - A comprehensive investment strategy should include multiple metrics such as price-to-book ratio, price-to-earnings ratio, and price-to-sales ratio, alongside P/CF [7] - Incorporating a favorable Zacks Rank and a Value Score of A or B can enhance investment outcomes and mitigate the risk of value traps [7] Parameters for True-Value Stocks - Key parameters for selecting true-value stocks include: - P/CF less than or equal to industry median - Price greater than or equal to $5 - Average 20-Day Volume greater than 100,000 - P/E using (F1) less than or equal to industry median [8][9] Selected Value Stocks - EnerSys (ENS) has a Zacks Rank 1, with a trailing four-quarter earnings surprise of 2.2% and a Value Score of A. The company expects sales growth of 1% and EPS growth of 19.8% [11][12] - Sonoco Products (SON) also holds a Zacks Rank 1, with anticipated sales growth of 35.1% and EPS growth of 48.1%, despite a share price decline of 18% over the past year [12][13] - World Kinect (WKC) has a Zacks Rank 1, expecting EPS growth of 6.7% and a share price increase of 14.7% in the past year [14] - General Motors (GM) carries a Zacks Rank 2, with a trailing four-quarter earnings surprise of 15.8% and projected EPS growth of 8%, alongside a share price increase of 21.1% [15]

Core Concept - Value investors seek stocks they believe are undervalued by the market, capitalizing on price movements that do not align with a company's long-term fundamentals [1] Group 1: Price-to-Book (P/B) Ratio - The P/B ratio is a key metric for value investors, comparing a stock's market value to its book value, calculated as market price per share divided by book value of equity per share [2][6] - A P/B ratio of less than one indicates a stock is undervalued, while a ratio greater than one suggests it may be overvalued [6][7] - Examples of stocks with favorable P/B ratios include General Motors (GM), KT Corporation (KT), The Greenbrier Companies (GBX), USANA Health Sciences (USNA), and Enersys (ENS) [2] 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, calculated by subtracting total liabilities from total assets [4][5] Group 3: Limitations of P/B Ratio - The P/B ratio is most relevant for industries with tangible assets, such as finance and manufacturing, but may be misleading for companies with high R&D expenses or significant debt [9][10] - It is advisable to analyze P/B in conjunction with other ratios like P/E and P/S for a comprehensive investment decision [10] Group 4: Screening Parameters - Screening for stocks involves comparing P/B, P/S, and P/E ratios against industry medians, with a focus on stocks with a PEG ratio of less than 1, a current price of at least $5, and a Zacks Rank of 1 or 2 [12][13][14][15] Group 5: Selected Low P/B Stocks - General Motors has a projected 3-5 year EPS growth rate of 6.3% and currently holds a Zacks Rank of 2 with a Value Score of A [16][17] - KT Corporation has a projected EPS growth rate of 17.6% and holds a Zacks Rank of 1 with a Value Score of A [18] - The Greenbrier Companies has a projected EPS growth rate of 11.7% and also holds a Zacks Rank of 1 with a Value Score of A [18] - USANA Health Sciences has a projected EPS growth rate of 12.0% and holds a Zacks Rank of 1 with a Value Score of A [19] - EnerSys has a projected EPS growth rate of 18.0% and holds a Zacks Rank of 1 with a Value Score of A [20]

Core Viewpoint - Growth investors are increasingly focused on stocks with above-average financial growth, which can lead to solid returns, but identifying such stocks can be challenging due to inherent volatility and risks [1] Group 1: Company Overview - EnerSys (ENS) is highlighted as a cutting-edge growth stock with a favorable Growth Score and a top Zacks Rank, indicating strong growth prospects [2] - The company has a historical EPS growth rate of 18.7%, with projected EPS growth of 19.3% this year, surpassing the industry average of 12.4% [5] Group 2: Financial Metrics - EnerSys exhibits a year-over-year cash flow growth of 40.2%, significantly higher than the industry average of 15%, which is crucial for its expansion without relying on external funding [6] - The historical annualized cash flow growth rate for EnerSys over the past 3-5 years is 9.7%, compared to the industry average of 7.6% [7] Group 3: Earnings Estimates - There has been a positive trend in earnings estimate revisions for EnerSys, with the Zacks Consensus Estimate for the current year increasing by 1.1% over the past month, indicating potential near-term stock price movements [8] - EnerSys has achieved a Growth Score of B and a Zacks Rank 1 due to these positive earnings estimate revisions, suggesting it is a solid choice for growth investors [10]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market within a 30-day timeframe [2] Zacks Style Scores Overview - The Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score identifies undervalued stocks using financial ratios [3] - Growth Score assesses a company's financial health and future growth potential [4] - Momentum Score evaluates stocks based on price trends and earnings outlook [5] - VGM Score combines all three styles to highlight stocks with the best overall characteristics [6] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in stock selection [7] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, achieving an average annual return of +25.41% since 1988 [8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal investment potential [9] - The direction of earnings estimate revisions is crucial; stocks with lower ranks but high Style Scores may still face price declines [10] Company Spotlight: EnerSys - EnerSys, based in Pennsylvania, specializes in manufacturing and distributing industrial batteries and related products [11] - The company holds a Zacks Rank of 1 (Strong Buy) and a VGM Score of A, indicating strong investment potential [11] - EnerSys has a Momentum Style Score of B, with shares increasing by 11.3% over the past four weeks [12] - Recent upward revisions in earnings estimates suggest a positive outlook, with the Zacks Consensus Estimate rising to $9.91 per share for fiscal 2025 [12]

Core Viewpoint - EnerSys (ENS) is showing potential for short-term gains due to its recent technical movements and positive earnings estimate revisions [1][3][4]. Technical Analysis - ENS has recently reached a key level of support and has overtaken the 20-day moving average, indicating a short-term bullish trend [1]. - The 20-day moving average is a significant trading tool that helps smooth out price fluctuations and provides trend reversal signals [2]. Earnings Estimates - There have been four upward revisions for ENS's earnings estimates for the current fiscal year, with no downward revisions, leading to an increase in the consensus estimate [3]. Investment Outlook - Given the technical indicators and positive earnings revisions, investors may want to monitor ENS for potential gains in the near future [4]. - ENS has experienced an 11.3% rally over the past four weeks and currently holds a Zacks Rank 1 (Strong Buy), suggesting it may be poised for further upward movement [5].

EnerSys (NYSE:ENS) Q3 2025 Earnings Conference Call February 6, 2025 9:00 AM ET Company Participants Lisa Hartman - Vice President, Investor Relations and Corporate Communications David Shaffer - Chief Executive Officer Shawn O'Connell - President and Chief Operating Officer Andrea Funk - Executive Vice President and Chief Financial Officer Conference Call Participants Noah Kaye - Oppenheimer Greg Lewis - BTIG Chip Moore - ROTH Capital Partners Brian Drab - William Blair Operator And good day, and thank you ...

Core Insights - EnerSys reported adjusted earnings of $3.12 per share for Q3 fiscal 2025, exceeding the Zacks Consensus Estimate of $3.03, marking a 22% year-over-year increase [1] - Net sales reached $906.2 million, falling short of the consensus estimate of $935 million, but reflecting a 5.2% year-over-year growth driven by specialty and communications markets [2] Financial Performance - The Energy Systems segment generated sales of $389.2 million, accounting for 42.9% of total sales, up 4.2% year over year, but below the consensus estimate of $409 million [3] - The Motive Power segment's sales were $358.9 million, representing 39.6% of total sales, a 1% year-over-year increase, also missing the consensus estimate of $378 million [4] - The Specialty segment achieved sales of $155.2 million, up 17% year over year, surpassing the consensus estimate of $152 million [5] Margin and Cost Analysis - Cost of sales increased by 4.4% year over year to $533.4 million, while gross profit rose by 19.9% to $298.2 million, resulting in a gross margin increase of 400 basis points to 32.9% [6] - Operating expenses rose by 7.2% to $154.3 million, with operating earnings increasing by 54.1% to $142.7 million, leading to an operating margin increase of 500 basis points to 15.7% [6] Balance Sheet and Cash Flow - As of the end of Q3 fiscal 2025, EnerSys had cash and cash equivalents of $463.2 million, up from $333.3 million at the end of fiscal 2024, while long-term debt increased to $1.27 billion from $802 million [7] - The company generated net cash of $125.1 million from operating activities in the first nine months of fiscal 2025, down from $320.2 million in the prior year, with capital expenditures totaling $90.8 million [8] Guidance - For fiscal 2025, EnerSys expects adjusted earnings to be in the range of $9.97–$10.07 per share, an increase from the previous guidance of $9.65–$9.95, while net sales are now projected to be between $3.603–$3.643 billion, lower than the earlier estimate of $3.675–$3.765 billion [9] - The company anticipates adjusted earnings for the fiscal fourth quarter to be between $2.75–$2.85 per share, with net sales projected in the range of $0.96–$1.0 billion [10]

Q3'25 Financial Performance - Net sales reached $906 million, a 5% year-over-year increase[8] - Adjusted operating earnings were $155 million, up 19% year-over-year, with a margin of 171%[8] - Adjusted EBITDA was $171 million, a 19% year-over-year increase, with a margin of 189%[8] - Adjusted EPS was $312, up 22% year-over-year[8] - Adjusted gross profit margin increased by 230 basis points year-over-year to 330%, or 80 basis points excluding IRA benefits[9] Segment Performance - Energy Systems segment net sales increased by 4% year-over-year to $389 million, with adjusted operating earnings up 77%[37] - Motive Power segment net sales increased by 1% year-over-year to $359 million[39] - Specialty segment net sales increased by 17% year-over-year to $155 million, with adjusted operating earnings up 28%[41] Balance Sheet and Cash Flow - Cash and cash equivalents increased to $463 million[43] - Net debt was $852 million, resulting in a net leverage ratio of 15x[43] - Free cash flow was $57 million[8] Q4'25 and FY'25 Guidance - The company projects Q4'25 net sales between $960 million and $1 billion and adjusted EPS between $275 and $285[51] - Fiscal year 2025 net sales are projected between $3603 billion and $3643 billion, with adjusted EPS between $997 and $1007[51] - Capital expenditures for fiscal year 2025 are expected to be approximately $120 million[51]