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4 Value Picks That Could Weather Tariff Volatility and Slowing Growth
ZACKS· 2025-03-24 12:45
Market Overview - U.S. equities experienced modest gains, with the S&P 500 rising 0.08% to 5,667.56, the Nasdaq Composite increasing 0.52% to 17,784.05, and the Dow Jones Industrial Average adding 32.05 points, also up 0.08% to 41,985.35 [1][2] Economic Concerns - Uncertainty regarding potential tariffs has created caution among investors, impacting economic momentum and sentiment [2] - The Federal Reserve has maintained its benchmark interest rate in the range of 4.25-4.5%, unchanged since December [2] Investment Strategy - In a volatile market characterized by geopolitical uncertainty and changing monetary policy, value stocks are highlighted as a compelling investment option due to their trading below intrinsic value, providing a margin of safety [3] - The Price to Cash Flow (P/CF) ratio is emphasized as an effective valuation metric for assessing value stocks, with lower ratios indicating better financial health [4][7] Value Investing Insights - Value investing focuses on fundamentally sound stocks that have been undervalued due to external factors, with the potential for recovery as investors recognize their inherent value [5] - Positive cash flow is crucial for a company's liquidity, enabling it to meet obligations and reinvest, while negative cash flow indicates declining liquidity and reduced flexibility [9] Stock Selection Criteria - A comprehensive approach to identifying true-value stocks includes using multiple valuation metrics such as P/CF, price-to-book, price-to-earnings, and price-to-sales ratios, along with Zacks Rank and Value Score [10][14] - Specific parameters for selecting value stocks include a P/CF ratio less than or equal to the industry median, a minimum stock price of $5, and a substantial average trading volume [11][12] Highlighted Value Stocks - Fresenius Medical Care AG (FMS) has a Zacks Rank 1, with a trailing four-quarter earnings surprise of 15.7% and a Value Score of A, showing a 28.2% increase in shares over the past year [15][16] - EnerSys (ENS) holds a Zacks Rank 2, with a trailing four-quarter earnings surprise of 2.2% and a Value Score of A, with shares up 3.9% in the past year [16][17] - General Motors Company (GM) also carries a Zacks Rank 2, with a trailing four-quarter earnings surprise of 15.8% and a Value Score of A, experiencing a 14.3% share increase over the past year [18] - Itron, Inc. (ITRI) has a Zacks Rank 2, with a trailing four-quarter earnings surprise of 40.8% and a Value Score of B, with shares rising 18.5% in the past year [19]
New Strong Buy Stocks for March 17th
ZACKS· 2025-03-17 11:25
Core Insights - Five stocks have been added to the Zacks Rank 1 (Strong Buy) List, indicating strong potential for investment returns Group 1: Company Performance - Third Coast Bancshares (TCBX) has seen a 11.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Komatsu (KMTUY) has experienced an 11.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Plains All American Pipeline (PAA) has seen a 10.1% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - Limbach (LMB) has experienced a 9.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [4] - Enersys (ENS) has seen a 7.2% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [4]
EnerSys Enhances Data Center Backup Power Management Technology
ZACKS· 2025-03-13 17:09
Group 1: Company Overview - EnerSys (ENS) has enhanced its DataSafe Thin Plate Pure Lead (TPPL) batteries with advanced embedded technology for improved backup power management in data centers [1] - The company has launched a new product line named New Ventures, focusing on energy storage and management systems for various applications, including utility backup power and dynamic fast charging for electric vehicles [4] Group 2: Industry Demand - The demand for data center power is increasing, particularly from sectors like Artificial Intelligence (AI) and cryptocurrencies, with the International Energy Agency (IEA) projecting a doubling of demand by 2026 to reach 1,000 terawatt-hours (TWh) [2] - This rising demand necessitates improvements in backup power systems for data centers to ensure continuous operations [2] Group 3: Technological Advancements - ENS's new monitoring technology for lead-acid batteries tracks critical factors such as voltage and temperature, allowing for better maintenance and reduced downtime [3] - The monitoring technology integrates with EnerSys' EnVision Connect system, providing enhanced insights and control, which lowers maintenance costs and supports continuous operation in high-demand environments [3] Group 4: Financial Performance - EnerSys currently holds a Zacks Rank of 1 (Strong Buy) and has seen its stock gain 5.7% over the past year, contrasting with a 16.9% decline in the industry [5]
5 Low P/B Stocks to Add to Your Portfolio in March
ZACKS· 2025-03-10 13:46
Core Insights - The article discusses the challenges and methodologies of value investing, emphasizing the importance of identifying stocks trading below their intrinsic value [1][2]. Group 1: Value Investing Concepts - Value investing focuses on selecting stocks priced below their intrinsic value, contrasting with growth investing which targets stocks with high growth potential [2]. - The Price-to-Earnings (P/E) and Price-to-Book (P/B) ratios are essential tools for value investors to identify undervalued stocks [2][3]. - The P/B ratio compares a stock's market price to its book value, calculated as market price per share divided by book value of equity per share [3][7]. 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 [5]. - It is calculated by subtracting total liabilities from total assets, often equating to common stockholders' equity [6]. Group 3: P/B Ratio Analysis - A P/B ratio of less than one indicates that a stock is undervalued, while a ratio greater than one suggests it may be overvalued [7]. - The P/B ratio is particularly relevant for industries with tangible assets, such as finance and manufacturing, but may be misleading for companies with high R&D expenses or negative earnings [10][11]. Group 4: Screening Parameters for Value Stocks - Screening parameters include a P/B ratio less than the industry median, a Price-to-Sales (P/S) ratio below the industry average, and a P/E ratio using forward estimates that is lower than the industry median [12][13]. - A PEG ratio of less than 1 indicates undervaluation relative to future growth prospects, while a minimum stock price of $5 and a trading volume of at least 100,000 are also considered [14][15]. Group 5: Low Price-to-Book Stocks - General Motors (GM) 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][19]. - 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 [19]. - Itron has a projected EPS growth rate of 29.0% and holds a Zacks Rank of 2 with a Value Score of B [20][21]. - EnerSys has a projected EPS growth rate of 18.0% and holds a Zacks Rank of 2 with a Value Score of A [21].
EnerSys (ENS) Recently Broke Out Above the 200-Day Moving Average
ZACKS· 2025-03-06 15:30
Core Viewpoint - EnerSys (ENS) is showing potential as a strong investment opportunity due to its recent technical indicators and positive earnings revisions [1][2][3] Technical Analysis - ENS has crossed above the 200-day moving average, indicating a long-term bullish trend [1] - The stock has rallied 5.8% over the past four weeks, suggesting upward momentum [2] - The 200-day simple moving average serves as a key support level for ENS [2] Earnings Estimates - There have been no downward revisions for ENS's earnings estimates in the past two months, with four upward revisions noted [3] - The consensus earnings estimate for ENS has increased, reinforcing the bullish outlook [3] Investment Recommendation - Given the technical indicators and positive earnings revisions, ENS is recommended for consideration on investors' watchlists [3]
4 Top Value Stocks to Invest in as the Market Battles Tariff Concerns
ZACKS· 2025-03-05 13:05
Market Overview - U.S. stocks experienced a significant decline, with the Dow Jones Industrial Average dropping 670.25 points (1.55%) to close at 42,520.99, following a previous decline of 650 points [2] - The S&P 500 fell 1.22% to settle at 5,778.15, while the Nasdaq Composite decreased by 0.35% to finish at 18,285.16 [2] - The decline in stock prices is attributed to escalating trade tensions and the administration's decision to impose tariffs on imports from Canada, Mexico, and China, leading to retaliatory actions from these countries [1] Investment Opportunities - Amid ongoing market volatility, value stocks are highlighted as a potentially attractive investment option due to their tendency to trade below intrinsic value, providing a margin of safety [3] - Companies such as EnerSys (ENS), Sonoco Products Company (SON), Verint Systems Inc. (VRNT), and General Motors Company (GM) are noted for having low Price to Cash Flow (P/CF) ratios, indicating favorable valuation metrics [4] Valuation Metrics - The P/CF ratio is emphasized as a reliable metric for assessing financial health, as it accounts for non-cash charges and provides a clearer picture of a company's cash generation capabilities [5][6] - Positive cash flow is associated with increased liquidity, enabling companies to manage debt, reinvest, and undertake shareholder-friendly actions, while negative cash flow indicates reduced liquidity and flexibility [7] Value Stock Selection Criteria - A comprehensive approach to identifying value stocks includes considering multiple metrics such as price-to-book ratio, price-to-earnings ratio, and price-to-sales ratio, alongside a favorable Zacks Rank and Value Score [8] - Specific 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 exceeding 100,000 [9][10][11] Company Performance Highlights - EnerSys (ENS) has a Zacks Rank of 1, with a trailing four-quarter earnings surprise of 2.2% and projected sales and EPS growth of 1% and 19.8%, respectively [13] - Sonoco Products (SON) also holds a Zacks Rank of 1, with a trailing earnings surprise of 2% and expected sales and EPS growth of 26.6% and 42.9%, respectively [14] - Verint Systems (VRNT) has a Zacks Rank of 1, with a trailing earnings surprise of 8.8% and projected sales and EPS growth of 2.3% and 6.2%, respectively [15] - General Motors (GM) carries a Zacks Rank of 2, with a trailing earnings surprise of 15.8% and an expected EPS growth of 8% [16]
4 Relative Price Strength Stocks With Bright Prospects for 2025
ZACKS· 2025-02-26 14:25
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]
E Split Corp. Renews At-The-Market Equity Program
Globenewswire· 2025-02-20 22:20
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 ...
Focus on These 4 Low P/CF Stocks to Maximize Returns in 2025
ZACKS· 2025-02-20 17:20
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]
5 Low Price-to-Book Stocks Worthy of Value Investors' Attention
ZACKS· 2025-02-19 14:20
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]