Battery maker EnerSys continues to put up powerful, accelerating double-digit earnings growth numbers. Meanwhile, it's trading near its all-time high and EnerSys stock got an upgrade for its Relative Strength (RS) Rating, from 64 to 71 on Thursday.
The company has posted five quarters of rising earnings growth. Over the past four quarters EnerSys' earnings growth rate has risen from 26% to 52%, 64% and 66% last quarter to $1.84 per share.
Top line growth has been less impressive. Revenue growth has cooled from 9% four quarters ago to flat last quarter with the same quarter a year earlier.
EnerSys Stock Has Been On A Tear
The rise in its stock price has been outstanding though. EnerSys stock rose nearly 80% in the last 14 months, from an intraday low 56.72 on Oct. 13, 2022 to close at 101.96 Thursday, up 2.79% for the day. Its RS Rating upgrade is significant because it puts the company closer to a key benchmark.
Market research shows that the best-performing stocks typically have an RS Rating north of 80 in the early stages of their moves. See if EnerSys can continue to show renewed price strength and hit that benchmark.
EnerSys is trying to complete a consolidation with a 113.34 buy point, its all-time high, set on July 20. See if it can break out in volume at least 40% above average. It's risen three of the last four trading sessions and four of the last six.
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Among its other ratings EnerSys stock has a 78 Composite Rating, out of 99. It has a splendid 91 Earnings Per Share Rating and a B SMR Rating (sales + profit margins + return on equity) on an A-to-E scale with A tops. Its C+ Accumulation/Distribution Rating shows that mutual funds, ETFs and the like are buying about as many of its shares as selling.
EnerSys makes batteries for backup as well as for industrial use such as for forklifts, as well as for high tech markets such as computer network backups and various industries including medical, aerospace and defense systems.
Among The Top 20% In Its Group
EnerSys stock earns the No. 8 rank among its peers in the 45-stock Electrical Power/Equipment industry group. nVent Electric and Powell Industries are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
This exclusive rating from Investor's Business Daily identifies market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock's price behavior over the last 52 weeks holds up against all the other stocks in our database.
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