Here's Why You Should Consider Investing in EnerSys Stock Now

EnerSys ENS is well-positioned to benefit from healthy business across well-diversified end markets and accretive acquisitions. The company’s shareholder-friendly moves also augur well.

Shares of ENS have gained 59.3% compared with the industry’s 4.4% growth in the year-to-date period.

Let’s delve into the factors that make this Zacks Rank #2 (Buy) company a smart investment choice at the moment.

Business Strength: EnerSys is benefiting from strength in its Specialty segment, driven by solid momentum in the aerospace and defense end markets. The segment’s revenues increased 16% year over year in the second quarter of fiscal 2026. The Energy Systems segment is benefiting from the expansion of U.S. communications networks, fueled by AI-driven data demand. Increased demand for products from industrial customers also bodes well. The global megatrends, including 5G expansion, rural broadband build-outs, modernization of energy grids, electrification, automation and decarbonization, are aiding ENS.

Solid Product Offerings: EnerSys is well-positioned to benefit from its strong product portfolio, continued innovation, including lithium, Touch-Safe, CPUC and DC fast-charge solutions, and improving demand. The company has reinforced its leadership in NexSys Thin Plate Pure Lead (TPPL) products over the past few years and recently launched the New Ventures product line, which provides energy storage and management systems for applications such as utility backup power and fast charging for electric vehicles. In the second quarter of fiscal 2025 (ended September 2025), maintenance-free product sales rose 14% year over year.

Expansion Initiatives: The company solidified its product portfolio and leveraged business opportunities by adding assets. In July 2024, EnerSys acquired Bren-Tronics, Inc. in an all-cash deal of $208 million. The acquisition strengthened the company’s position as a critical enabler of the energy transition and supported its growth in the growing military and defense end market. The buyout expanded EnerSys’ lithium product offerings. In the second quarter of fiscal 2026, acquisitions boosted ENS’ sales by 1%.

Rewards to Shareholders: ENS is committed to returning value to shareholders through share repurchases and dividends. The company paid out dividends of $18.9 million in the first six months of fiscal 2026. EnerSys also bought back its shares worth $217.8 million in the same period. The company hiked its quarterly dividend by 9% to 26.25 cents per share in August 2025.

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This article originally published on Zacks Investment Research (zacks.com).

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