ENERSYS

76.98 -0.87 (-1.13%) Sell

Want to invest in ENS? Avoid as it significantly underperformed

13 min read

ENERSYS significantly underperformed on Tuesday. It returned -1.13% to close at 76.98. On a day when the overall market breadth was 35%, it closed higher than 8% of the market. In comparison, the benchmark SP500 index closed today at -0.0004%.

[Themes containing ENS]

ENS showed a down trend over the last 3 months. During this period ENS returned -8.0% and saw a maximum drawdown of -16.53%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in ENS till volatility reduces and a clear trend emerges.

Trend

ENS has been underperforming the SP500 index in recent time, after having outperformed till 8 Dec, 2016. Over the last 2 years 11 months and 7 days, ENS outperformed the SP500 index on 50% days. Which indicates that on days ENS outperforms the SP500 index, it's performance is marginally better than on the days it underperforms the SP500 index.

During the last three months ENS delivered profits on 50% days. However, it still managed to end this period in a loss. It's best return during this period (of +6.25%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -5.28%) was on Tuesday, 4 Dec, 2018. There was initially a bearish trend during this period which started on 17 Oct, 2018 and went on till 24 Oct, 2018. The trend delivered -11.85% losses to investors. This was followed by a bullish trend that started on 30 Oct, 2018 and ended on 8 Nov, 2018. This bullish trend delivered +19.67% to investors.

On monthly basis, ENS delivered profits in more months over the last year, than losses. ENS delivered profits less regularly than SP500 index. ENS significantly outperformed SP500 index in May 2018, when it returned +16.55% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. ENS had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both ENS and SP500 index significantly outperform during months when quarterly/annual results are announced.

"The way to become rich is to put all your eggs in one basket and then watch that basket.

ENS is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in ENS's volatility from 13 Sep, 2018 to 8 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that ENS has significant positive skewness in it's return distribution. This indicates that investors can expect ENS to recover from drawdowns quickly. Which makes ENS a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

SP500 index has more chance of extreme outcomes than ENS. Therefore, SP500 must receive a lower allocation than ENS in your portfolio. SP500 index usually has shorter drawdown period than ENS.

Based on your interest in ENS you may find it interesting to know that AMRH and APRN have both shown remarkable performance and deserve to be on every investors' watchlist.

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