7 Undervalued Lithium Stocks to Invest In

3. EnerSys (NYSE:ENS

Number of Hedge Fund Holders: 30

Forward Price to Earnings (P/E) Ratio: 9.33

EnerSys (NYSE:ENS), a multinational leader in energy storage solutions, specializes in advanced battery systems for commercial, industrial, and defense applications. The company provides a diverse portfolio of battery technologies, including Thin Plate Pure Lead (TPPL), lead-acid, and lithium-ion, aiding mission-critical infrastructure and logistics.

Fueled by strong aerospace and defense demand, gradual recovery in the U.S. communications market, and contributions from Bren-Tronics, EnerSys (NYSE:ENS) reported revenue of $906 million, signifying a 5% year-over-year growth. The Motive Power segment contributed $359 million in revenue, with adjusted operating earnings of $53 million. The company accomplished significant margin expansion despite revenue coming in below guidance due to a temporary disruption at a customer’s Motive Power plant in EMEA and FX headwinds. Backed by a $75 million benefit from IRA tax credits, the gross margin rose to 32.9%.

Furthermore, EnerSys (NYSE:ENS) is solidifying its position in the lithium-ion market with a $500 million investment in a new gigafactory in South Carolina. The facility will generate various lithium-ion cells for commercial, industrial, and defense applications with an aggregate capacity of 4GWh per year and is set to become operational by late 2027. The company is enhancing its battery technology portfolio via innovation, achieving its first revenue from a fast-charging storage station and ramping up the development of battery energy storage systems (BESS) for warehouse and distribution facilities.

Looking ahead, EnerSys (NYSE:ENS) is set to capitalize on the increasing demand for electrification efforts and energy storage. The company has elevated its fiscal 2025 guidance and projects Q4 to be one of its strongest quarters, with forecasted net sales of between $960 million and $1 billion. By prioritizing high-margin battery technologies and manufacturing efficiency, the company will solidify its leadership in the evolving energy storage sector.