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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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 value investors might notice is Energizer (ENR - Free Report) . ENR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 8.42, while its industry has an average P/E of 17.93. ENR's Forward P/E has been as high as 11.09 and as low as 8.42, with a median of 9.93, all within the past year.

Finally, investors will want to recognize that ENR has a P/CF ratio of 9.46. 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 stock's P/CF looks attractive against its industry's average P/CF of 24.09. ENR's P/CF has been as high as 11.18 and as low as 5.14, with a median of 8.37, all within the past year.

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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