We recently compiled a list of the 12 Cheap EV Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where EnerSys (NYSE:ENS) stands against the other cheap EV stocks.
Ownership of EVs is rising in the US. On March 16, CNBC reported that currently there are nearly 6 million battery EVs and plug-in hybrids on the roads. While this represents only a small portion of the overall vehicle market, it marks significant progress and automobile manufacturers remain invested in the transition away from gasoline. It is worth noting that in 2024 sales of traditional internal combustion engine cars fell below 80% for the first time in modern history.
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The steady growth in EV sales suggests that consumer concerns about range anxiety are diminishing. However, this fear of running out of battery power remains a challenge for the EV market. The EV industry is working to address this by installing enough chargers in public places and expanding public charging infrastructure to drive wide-scale EV adoption. Despite many efforts, charging companies are finding it difficult to maintain growth because of political uncertainties.
The Trump administration has proposed stripping away federal incentives for EVs and instead prioritizing oil and gas policies. This creates a challenging environment for EV manufacturers and charging companies. Moreover, tariffs on essential steel and aluminum are further challenging automakers and their operations.
Despite current challenges, many believe that the EV sector is expected to grow significantly as it aligns with global sustainability goals and technological advancements. Additionally, innovations in battery technology and charging infrastructure continue to make EVs more affordable and feasible.
Methodology
To compile our list of the 12 cheap EV stocks to buy according to hedge funds, we looked for the biggest EV companies. We reviewed our own rankings, financial media reports, ETFs, and various online resources to compile a list of the best EV stocks. To find cheap EV stocks, we narrowed down our selection by looking for stocks trading at under 20 times their forward earnings as of March 17, 2025. Next, we focused on the top 12 cheap EV stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds. Finally, the 12 cheap EV stocks to buy were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q4 2024.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A technician wearing a safety suit and goggles working on a battery pack for an electric vehicle.
EnerSys (NYSE:ENS)
Forward P/E: 9.37
Number of Hedge Fund Holders: 30
EnerSys (NYSE:ENS) is a global leader in stored energy solutions for various markets and industrial applications. The company offers a wide range of batteries, chargers, energy systems, and related products and services. Through its products and services, EnerSys (NYSE:ENS) serves various industries, including telecommunications, defense, and electric vehicles. The company’s batteries and chargers are used in industrial electric-powered vehicles. ENS ranks among the best cheap EV stocks to buy.
The company provides batteries and chargers for electric forklifts and other industrial vehicles through its Motive Power division while its New Ventures division focuses on energy storage and management systems for applications like utility backup power and fast charging for EVs. In September 2024, EnerSys (NYSE:ENS) announced it was selected for a $199 million Department of Energy award negotiation to partially fund the company’s new lithium-ion cell production facility in South Carolina. The company plans to invest $615 million over four years in this facility. The facility will produce five gigawatt-hours (GWh) of lithium-ion cells annually and EnerSys (NYSE:ENS) plans to use these cells for various products such as NexSys iON batteries for forklifts, Alpha XRT-Li systems for communication networks, fast charging systems, and future high-energy Li6T batteries for military vehicles.
Overall, ENS ranks 7th on our list of the cheap EV stocks to buy according to hedge funds. While we acknowledge the 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 but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
