1. EnerSys (NYSE:ENS)
Market Capitalization: $3.68 Billion
Number of Hedge Fund Holders: 30
EnerSys (NYSE:ENS) is a leader in stored energy solutions for various markets and industrial applications. It produces batteries and energy storage solutions for electric vehicles (EVs). The company operates through four main divisions: Energy Systems, Motive Power, Specialty, and New Ventures. These sectors allow EnerSys to cater to various industries, including telecommunications, defense, and electric vehicles (EVs). Motive Power batteries and chargers are used in industrial electric-powered vehicles. Through its New Ventures division, EnerSys (NYSE:ENS) provides energy storage and management systems for various applications including utility backup power and dynamic fast charging for electric vehicles.
In September 2024, the company announced that it had been selected for a $199M Department of Energy award negotiation to partially fund EnerSys’ (NYSE:ENS) planned lithium-ion cell production facility in Greenville, South Carolina. The investment aligns with the federal Bipartisan Infrastructure Law, which seeks to enhance domestic battery manufacturing capabilities. EnerSys (NYSE:ENS) plans to invest around $615 million over four years in this facility, which is expected to create approximately 500 jobs and produce five-gigawatt hours (GWh) of lithium-ion cells annually. The plan includes developing a state-of-the-art manufacturing facility that will cover 500,000 square feet. This gigafactory will produce lithium-ion cells for a variety of products in all its business areas, including fast charging systems, NexSys iON batteries for electric forklifts, Alpha XRT-Li power systems for communication networks, and future high-energy Li6T batteries for military vehicles.
Previously, in July 2024, EnerSys (NYSE:ENS) completed its acquisition of Bren-Tronics to further strengthen its portfolio in the military and defense sectors. This acquisition enhances its capabilities in lithium product offerings, which are critical for both commercial and defense applications. With its comprehensive approach to energy storage and management, along with significant investments and strategic moves, EnerSys (NYSE:ENS) is well-positioned for growth.
Overall, ENS ranks first among the 11 small-cap EV stocks to invest in. While we acknowledge the potential of EV companies, our conviction lies in the belief that 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 but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
