10 Best Energy Storage Stocks to Buy According to Hedge Funds

8. EnerSys (NYSE:ENS)

Number of Hedge Funds Holding: 23

Stock Upside: 0.11%

EnerSys (NYSE:ENS) is one of the best energy storage stocks to buy according to hedge funds. On March 24, EnerSys (NYSE:ENS) CEO Shawn O’Connell and CFO Andrea Funk appeared in a fireside chat at the 38th Annual ROTH Conference in Dana Point, California, where O’Connell outlined a strategic reset and growth roadmap for the company.

O’Connell said he launched a company-wide initiative called “EnerGize.” He explained that this is a strategic reset whose goal is to refocus the company on the core business, cut costs that do not add value, and sharpen execution.

On the telecom side, O’Connell said the sector had gone through an unusually deep downturn, one he said he has seen only twice in his career since the 1990s. This downturn, the CEO said, was driven by inventory buildup, a “5G monetization issue,” and rising interest rates. However, he noted the company is now beginning to see “green shoots” as carriers and broadband providers are being pushed to expand data capacity, particularly for AI-related use cases.

On his part, Funk, the CFO, said the company has delivered a little over 100% free cash flow conversion over multiple years. The company also ended the last quarter at 1.2x leverage and is expecting an IRS refund of about $120 million, Funk noted. He added that the company has ordered capital priorities as internal investment, has seen its dividends grow with earnings, implemented disciplined acquisitions, and conducted a $1 billion stock buyback program.

EnerSys (NYSE:ENS) is a global provider of stored energy solutions. It specializes in industrial batteries, energy systems, and power equipment used across sectors such as telecommunications, data centers, and transportation.