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Should Value Investors Buy Energizer (ENR) Stock?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 company to watch right now is Energizer (ENR - Free Report) . ENR is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 8.20, while its industry has an average P/E of 18.91. Over the past year, ENR's Forward P/E has been as high as 10.59 and as low as 8.17, with a median of 9.06.

Finally, investors should note that ENR has a P/CF ratio of 8.66. 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. ENR's current P/CF looks attractive when compared to its industry's average P/CF of 21.76. Over the past year, ENR's P/CF has been as high as 11.18 and as low as 5.41, with a median of 9.50.

Value investors will likely look at more than just these metrics, but the above data helps show that Energizer is likely undervalued currently. And when considering the strength of its earnings outlook, ENR sticks out at as one of the market's strongest value stocks.

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