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Are Investors Undervaluing Energizer (ENR) Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is Energizer (ENR - Free Report) . ENR is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 7.57, which compares to its industry's average of 18.71. Over the past 52 weeks, ENR's Forward P/E has been as high as 10.91 and as low as 5.58, with a median of 8.10.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ENR has a P/S ratio of 0.56. This compares to its industry's average P/S of 0.94.

Finally, investors will want to recognize that ENR has a P/CF ratio of 5.51. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. ENR's P/CF compares to its industry's average P/CF of 13.07. Over the past 52 weeks, ENR's P/CF has been as high as 10.68 and as low as 3.85, with a median of 7.49.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Energizer is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ENR feels like a great value stock at the moment.


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