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ENS or ABBNY: Which Is the Better Value Stock Right Now?
ENSEnerSys(ENS) ZACKS·2024-08-28 16:41

Core Insights - Investors in the Manufacturing - Electronics sector should consider EnerSys (ENS) and ABB (ABBNY) for potential value opportunities [1] - EnerSys has a stronger earnings outlook compared to ABB, indicated by its Zacks Rank of 2 (Buy) versus ABB's Zacks Rank of 3 (Hold) [3] Valuation Metrics - EnerSys has a forward P/E ratio of 11.03, significantly lower than ABB's forward P/E of 26.15, suggesting better value for ENS [5] - The PEG ratio for EnerSys is 0.61, while ABB's PEG ratio is 2.95, indicating that EnerSys is expected to grow earnings at a more favorable rate relative to its price [5] - EnerSys has a P/B ratio of 2.20 compared to ABB's P/B of 7.97, further supporting the argument that EnerSys is undervalued [6] Value Grades - EnerSys has received a Value grade of A, while ABB has a Value grade of C, reflecting the relative attractiveness of their valuations [6] - Overall, EnerSys is positioned as the superior value option based on its solid earnings outlook and favorable valuation metrics [7]