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Are Investors Undervaluing Energizer Holdings (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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Energizer Holdings (ENR - Free Report) . ENR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 14.34, which compares to its industry's average of 20.12. Over the past 52 weeks, ENR's Forward P/E has been as high as 16.50 and as low as 10.87, with a median of 13.91.

Another notable valuation metric for ENR is its P/B ratio of 10.38. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. ENR's current P/B looks attractive when compared to its industry's average P/B of 13.04. Within the past 52 weeks, ENR's P/B has been as high as 10.50 and as low as 6.37, with a median of 8.96.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ENR has a P/S ratio of 1.2. This compares to its industry's average P/S of 1.62.

These are only a few of the key metrics included in Energizer Holdings's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ENR looks like an impressive value stock at the moment.


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