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Are Investors Undervaluing Energizer (ENR) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is Energizer (ENR - Free Report) . ENR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.93 right now. For comparison, its industry sports an average P/E of 16.79. Over the past year, ENR's Forward P/E has been as high as 11.69 and as low as 8.53, with a median of 10.13.

Finally, investors will want to recognize that ENR has a P/CF ratio of 8.91. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 24.60. Over the past year, ENR's P/CF has been as high as 9.96 and as low as 5.14, with a median of 5.95.

Investors could also keep in mind Edgewell Personal Care (EPC - Free Report) , an Consumer Products - Staples stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Additionally, Edgewell Personal Care has a P/B ratio of 1.22 while its industry's price-to-book ratio sits at 3.93. For EPC, this valuation metric has been as high as 1.55, as low as 1.13, with a median of 1.29 over the past year.

These are only a few of the key metrics included in Energizer and Edgewell Personal Care strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ENR and EPC look like an impressive value stock at the moment.


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Energizer Holdings, Inc. (ENR) - free report >>

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