Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: EnerSys (ENS) - EnerSys currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating strong potential for outperformance [2][3] - The stock has shown significant price appreciation, with a 36.4% increase over the past quarter and a 53.46% rise over the last year, compared to the S&P 500's 5.77% and 13.9% respectively [6] Price Performance - Over the past week, ENS shares increased by 3.6%, while the Zacks Manufacturing - Electronics industry rose by 4.22% [5] - The monthly price change for ENS is 13.33%, outperforming the industry's 1.58% [5] Trading Volume - The average 20-day trading volume for ENS is 513,163 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the last two months, three earnings estimates for ENS have been revised upwards, raising the consensus estimate from $9.76 to $10.28 [9] - For the next fiscal year, three estimates have also moved higher, with no downward revisions [9] Conclusion - Considering the positive price trends, earnings revisions, and overall momentum, EnerSys is positioned as a solid momentum pick with a Momentum Score of B and a Zacks Rank of 2 (Buy) [11]

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]

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]

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].

Core Insights - EnerSys (ENS) shows a significantly improving earnings outlook, making it a solid investment choice as analysts continue to raise earnings estimates for the company [1][3] Estimate Revisions - The trend in estimate revisions reflects growing analyst optimism regarding EnerSys's earnings prospects, which is expected to positively impact its stock price [2] - For the current quarter, EnerSys is projected to earn $2.73 per share, a decrease of 12.5% from the previous year, but the Zacks Consensus Estimate has increased by 7.89% due to three upward revisions [5] - For the full year, the earnings estimate is $10.28 per share, representing a 1.3% increase from the prior year, with a 5.33% boost in the consensus estimate following three upward revisions [6][7] Zacks Rank - EnerSys currently holds a Zacks Rank 1 (Strong Buy), indicating strong agreement among analysts in raising earnings estimates, which historically correlates with stock outperformance [8] - Stocks with Zacks Rank 1 and 2 have shown significant outperformance compared to the S&P 500 [8] Stock Performance - The stock has increased by 16.7% over the past four weeks due to strong estimate revisions, suggesting potential for further upside [9]

Core Insights - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] - EnerSys (ENS) currently holds a Momentum Style Score of B and a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperformance [2][3] Price Performance - ENS shares have increased by 4.61% over the past week, while the Zacks Manufacturing - Electronics industry has decreased by 2.04% during the same period [5] - Over the last month, ENS's price change is 16.67%, significantly outperforming the industry's 1.12% [5] - In the last three months, ENS shares have risen by 35.32%, and over the past year, they are up 34.66%, compared to the S&P 500's increases of 7.27% and 15.21%, respectively [6] Trading Volume - The average 20-day trading volume for ENS is 442,582 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Estimates - In the past two months, three earnings estimates for ENS have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $9.76 to $10.28 [9] - For the next fiscal year, three estimates have also moved upwards without any downward revisions [9] Conclusion - Given the strong price performance, positive earnings estimate revisions, and favorable momentum indicators, ENS is positioned as a strong buy candidate for investors seeking momentum stocks [11]