13 Most Promising EV Stocks to Buy According to Hedge Funds

10. EnerSys (NYSE:ENS)

Number of Hedge Fund Holders: 30

EnerSys (NYSE:ENS) provides energy storage solutions for industrial applications. The company designs, manufactures and distributes energy systems, motive power batteries, specialty batteries, chargers, power equipment, and outdoor enclosures. It operates in over 100 countries.

Its operations are divided into four segments, Energy Systems, Motive Power, Specialty, and New Ventures. Energy Systems serve industries like telecommunications, broadband, and utilities, providing power conversion and storage solutions.

Motive Power products support electric forklifts and industrial vehicles, while Specialty batteries cater to aerospace, defense, medical, and automotive sectors. New Ventures focuses on energy management for applications such as utility backup and electric vehicle charging.

On September 20, EnerSys (NYSE:ENS) announced its selection for $199 million in negotiations from the U.S. Department of Energy (DOE) to support the development of a lithium-ion cell production facility in Greenville, South Carolina. The funding comes from the Bipartisan Infrastructure Law aimed at expanding U.S. battery manufacturing capabilities.

It plans to invest $615 million over four years to build the 500,000-square-foot plant, which will create up to 500 jobs and produce five gigawatt hours (GWh) of lithium-ion cells annually for commercial, industrial, and defense use. The company is also investing $50 million to build a specialized production line for the U.S. Department of Defense.

EnerSys (NYSE:ENS) will use state, federal, and tax incentives to fund the gigafactory, with production expected to start in 2028. It is collaborating with European battery firm, Verkor SAS for manufacturing expertise and aims to strengthen its domestic supply chain.

As reported by The Fly on September 23, Roth MKM analyst Chip Moore maintained a Buy rating on the company with a $120 price target. The optimism is based on the above-discussed $199 million award negotiation with the DOE.

The analyst noted that EnerSys (NYSE:ENS) is well-positioned to support the energy transition and address complex power challenges for its customers. He also expects that trends like electrification, automation, and digitization will drive future growth, which align with the company’s 8%-10% growth target. The company ranks at 10 on our list of most promising EV stocks.