Bull of the Day: EnerSys (ENS)

EnerSys ENS is seeing strong energy solutions demand thanks to data center and other mission critical needs. This Zacks Rank #1 (Strong Buy) is expected to grow earnings by 27% in fiscal 2027.

EnerSys is headquartered in Reading, PA and operates in stored energy solutions helping industrial, infrastructure and defense customers address critical power and operational needs.

It supports customers across key mission critical areas including communications networks, data centers, energy infrastructure, material handling, transportation, and aerospace and defense.

EnerSys serves customers in more than 100 countries. It has a market cap of $6.9 billion.

EnerSys Beats on Earnings Again in the Fiscal 2027 First Quarter

On Aug 12, 2026, EnerSys reported its first quarter fiscal 2027 results and beat the Zacks Consensus by $0.84. Earnings were $3.66 compared to the Zacks Consensus of $2.82.

EnerSys is an earnings all-star. It has only missed on the Zacks Consensus one time in the last 5 years and that was all the way back in 2021. It has beat on earnings 19 quarters in a row.

That’s an impressive earnings surprise track record.

Net sales were up 5% to $936 million. It saw a big jump in gross margin, up 510 basis points, to 33.5%.

The company was a beneficiary of the tariff refunds, realizing $30.9 million in the quarter. If you strip out the one-time refund, earnings were still up 42% year-over-year.

“Momentum across data centers, communications, and aerospace & defense is generating strong sales growth and margin expansion, offsetting the delayed recovery of material handling demand, and enabling another record first quarter result,” said Shawn O’Connell, President and CEO.

EnerSys Gives Bullish Fiscal Second Quarter 2027 Guidance

EnerSys is bullish about the outlook in the fiscal second quarter.

“Our second quarter outlook reflects continued strength across Data Centers, Communications, and Aerospace and Defense, as well as early recovery in Transportation,” said Andrea Funk, CFO.

The company also expects earnings growth to be from margin expansion in the first half of the fiscal year but with a shift to higher top line growth towards the end of fiscal 2027.

The company guided fiscal second quarter 2027 earnings above the Zacks Consensus in the range of $3.15 to $3.25. The Zacks Consensus had been looking for $3.01.

Analysts Raise EnerSys Estimates for the Full Year

Given the big earnings beat and guide for Q2 that was higher than the consensus, it’s not a surprise that analysts have raised their fiscal 2027 full year earnings estimates.

Two estimates were raised in the last week, pushing the Zacks Consensus up to $13.41 from $12.37 before the earnings report.

This is earnings growth of 27% as the company made only $10.56 in fiscal 2026.

One estimate was also revised higher for fiscal 2028 in the last week as well, pushing up the Zacks Consensus to $15.10. That’s another 12.6% earnings growth.

What it looks like now on the five-year price and consensus chart.

The Stock Takes a Time Out: A Buying Opportunity?

Shares of EnerSys have soared over the last year, gaining 93% during that period, as the AI infrastructure plays were hot. But in the last 3 months, the AI infrastructure trade has cooled off.

EnerSys shares are down 18.9% in this period.

But they are getting cheaper on a fundamental basis. EnerSys now trades with a forward price-to-earnings (P/E) ratio of 14.2. A P/E ratio under 15 usually indicates a company is undervalued.

EnerSys also has a PEG ratio of 0.9. A PEG is the P/E ratio divided by growth. A PEG ratio under 1.0 usually means a company has both value and growth. This is a rare combination.

EnerSys is also shareholder friendly. On Aug 12, 2026, the Board declared a 10% increase to the company’s quarterly dividend to $0.2875 per share. That’s an annual dividend of $1.05 which is yielding 0.6%.

It’s payable on Oct 2, 2026, to holders of record as of Sep 18, 2026.

The company also has a share buyback program and repurchased $50 million in shares in the fiscal first quarter of 2027.

For investors looking for a way to play energy solutions during the AI Revolution, but want to get it cheap, EnerSys should be on your short list.

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

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