EnerSys (NYSE:ENS) is one of the stocks on Jim Cramer’s radar. Cramer noted that the stock is “still very cheap” despite an “excellent” run, as he said:
“Finally, let’s talk about the one I really like, and that’s called EnerSys, which Sam in Pennsylvania asked about back on November 20th. EnerSys is really interesting. The company’s based in Reading, PA, [and it] designs, manufactures, and distributes industrial batteries. It’s been around since the late 90s, came public 21 years ago. Over the long run, EnerSys has been a great growth stock, climbing up steadily for most of the past two decades. But this year in particular, stock’s going into overdrive, up roughly 54% year-to-date return. Why? Because EnerSys looks to be a big winner from the AI data center theme. Anything that can store electricity is doing big business right now.
Now, here’s the real exciting thing about EnerSys: while the stock’s had an excellent run over the past several months, it’s still very cheap, trading at just 14 times this year’s earnings estimates and 12 times next year’s numbers. This company has beaten expectations for 16 consecutive quarters, so I trust these estimates. In fact, when EnerSys reported a month ago, that quarter was a thing of beauty. 6% organic sales growth, huge earnings beat. Management also raised its full-year sales and its earnings forecast pretty significantly. And the stock’s, well, let’s just say it’s been on fire ever since.
Really the only negative thing that I can say about EnerSys is that you’re chasing the stock here after all these recent gains, you know, I mean, they’re in the past. But I feel a lot more comfortable chasing when a stock’s at 14 times earnings, so I would actually bless buying some EnerSys right here, right now. And then if it drops, you can buy more and then hope for a market-wide sell-off… and get even bigger. Overall, I think Sam in Pennsylvania has a good one in EnerSys. I was pleasantly surprised to find out this was definitely not a year of magical investing stock.”
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EnerSys (NYSE:ENS) provides stored energy technologies that are used in industrial power systems, telecommunications, data centers, transportation, aerospace, defense, and electric-vehicle power applications.
While we acknowledge the risk and potential of ENS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ENS and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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