EnerSys, a leader in energy storage products, continues to put up some dazzling earnings numbers. And on Wednesday EnerSys stock got an upgrade for its Relative Strength (RS) Rating from 88 to 91, putting it among the top 10% of all stocks no matter what industry they are in.
EnerSys Stock Rating Meets CAN SLIM Requirement
The revised 91 RS Rating for EnerSys stock easily tops the 80 RS Rating that CAN SLIM investors look for. Market research reveals that the best-performing stocks typically have an RS Rating north of 80 in the early stages of their moves.
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EnerSys makes and sells batteries and energy storage systems used in a wide range of industries. The Reading, Pa.-based company, near Philadelphia, says on its website it has more than 10,000 corporate customers in 100 countries.
Among its other ratings, EnerSys stock boasts a terrific 96 Composite Rating. The Composite Rating is a blend of the other five IBD stock ratings. The all-encompassing Composite Rating helps investors easily measure the quality of a stock's fundamental and technical metrics. Additionally it carries a 91 Earnings Per Share Rating out of 99, and a B Accumulation/Distribution Rating. The B rating shows that institutional investors like ETFs and insurance company funds are fairly heavy buyers of its stock.
EnerSys stock didn't wait for the bear market to end last fall. It bottomed in mid-July 2022 at 55.60 and took off. On Aug. 10 it plunged 11.5% to 88.42 on sales growth that disappointed the Street. However, it quickly righted itself and closed above 99 on Wednesday, for its fourth straight higher close. It is technically considered extended and out of buy range after clearing a 94.32 buy point in a first-stage consolidation. See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week moving average.
Earnings Shot Up 64% Last Quarter
Earnings growth rose last quarter from 52% the prior quarter to 64% year over year, to $1.89 per share. But the top line growth fell from 9% the same quarter a year ago to 1% growth, to $908.6 million.
EnerSys stock earns the No. 4 rank among its peers in the 44- company Electrical Power/Equipment industry group. NVent Electric, which makes electrical connection and protection products, is No. 1. Powell Industries and hot stock Vertiv are Nos. 2 and 3, respectively. Vertiv stock has gone nearly vertical, skyrocketing more than 200% in less than four months, from 11.95 on April 23 to above 33 Wednesday afternoon.
When researching the best stocks to buy and watch, keep a close eye on relative price strength. IBD's proprietary rating tracks market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock's price behavior over the trailing 52 weeks compares to all the other stocks in our database.
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