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Energizer Stock Trading Above 200 & 50-Day SMA: How to Play the Stock?
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Energizer Holdings Inc. (ENR - Free Report) has demonstrated strong upward momentum, trading above its 200-day and 50-day simple moving averages (SMA). SMA is a key indicator of price stability and long-term bullish trends. ENR closed yesterday’s trading session at $31.71, ahead of its 200-day and 50-day SMA of $29.39 and $30.13, respectively. This technical strength, along with sustained momentum, reflects positive market sentiment and investor confidence in ENR's financial health and growth prospects.
Shares of the company have seen a decent price surge over the past six months, climbing 13.2% and surpassing the Zacks industry’s 7.5% growth. This leading manufacturer and distributor of batteries and lighting products is inching toward its 52-week high of $36.73 attained on Nov. 14, 2023, thus reflecting strong investor confidence and market optimism about its future.
Image Source: Zacks Investment Research
From a valuation perspective, the stock presents an attractive opportunity, trading at a discount relative to the industry benchmark. With a forward 12-month price-to-sales ratio of 0.79, which is below the industry average of 1.46 in the past year, the stock offers compelling value for investors seeking exposure to the sector. It currently has a Value Score of B, further validating its appeal.
Energizer is enhancing brand loyalty through targeted pricing strategies and promotions, ensuring profitability while increasing market share. Central to this strategy is Project Momentum, a cost-saving and operational efficiency initiative. In the third quarter of fiscal 2024, Project Momentum generated $14 million in savings, improving the gross margin by 270 basis points to 41.5%.
Energizer's market expansion focuses on utilizing its global distribution network to accelerate growth in developing markets. The company is driving innovation across product lines and introducing new solutions in categories like portable power and auto care to meet evolving consumer needs. This emphasis on innovation is expected to strengthen its market position and support sustained growth.
A core element of Energizer’s financial strategy is debt reduction. In the past two years, the company has repaid more than $430 million in debt, significantly lowering leverage and improving financial stability. This disciplined approach has reduced financial risks, bolstered the balance sheet and positioned ENR for long-term success.
Strong performance in the Auto Care and Battery segments has also driven growth. The Auto Care segment saw a 2.2% revenue increase and a 470-basis point rise in the profit margin while the Battery segment posted 6.2% profit growth in the fiscal third quarter. These results highlight Energizer's ability to effectively manage its diverse portfolio and drive performance in key business areas.
Image Source: Zacks Investment Research
Estimate Revisions Favor ENR Stock
The Zacks Consensus Estimate for earnings per share has been revised upward, reflecting the positive sentiment around Energizer. Over the past 60 days, analysts have increased their estimates for the current year by 6 cents to $3.27 per share and the next year by 14 cents to $3.54. These estimates indicate year-over-year growth of 5.8% and 8.4%, respectively.
Image Source: Zacks Investment Research
Conclusion
Investors may find Energizer stock attractive due to its strong upward momentum and technical performance, trading above key moving averages that signal positive market sentiment. The company is outperforming its industry peers and nearing its highest point in the past year, reflecting confidence in its future growth. ENR offers a solid value opportunity, trading at a discount compared with industry averages. With strategic initiatives focused on cost savings, operational efficiency and debt reduction, alongside strong performance in key segments like Auto Care and Batteries, ENR is well-positioned for sustained success. The company currently sports a Zacks Rank #1 (Strong Buy).
Other Key Picks
Here, we have highlighted three other top-ranked stocks, namely BRF Brasil Foods SA (BRFS - Free Report) , Kimberly-Clark Corporation (KMB - Free Report) and Ingredion Incorporated (INGR - Free Report) .
BRF Brasil Foods, formerly Perdigao S.A., is a Brazil-based food company. It presently sports a Zacks Rank of 1. BRFS has a trailing four-quarter average earnings surprise of 73.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BRF's current financial-year earnings and sales indicates growth of 256.7% and 14.7%, respectively, from the year-ago figures.
Kimberly-Clark is principally engaged in the manufacture and marketing of a wide range of consumer products. It has a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Kimberly-Clark’s current financial-year earnings indicates growth of 10.4% from the year-ago figure. KMB has a trailing four-quarter average earnings surprise of 12.6%.
Ingredion is an ingredients solutions provider specializing in nature-based sweeteners, starches and nutrition ingredients. The company currently carries a Zacks Rank of 2. INGR has a trailing four-quarter earnings surprise of 11%, on average.
The Zacks Consensus Estimate for INGR’s current financial-year earnings indicates growth of 5.6% from the year-ago number.
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Energizer Stock Trading Above 200 & 50-Day SMA: How to Play the Stock?
Energizer Holdings Inc. (ENR - Free Report) has demonstrated strong upward momentum, trading above its 200-day and 50-day simple moving averages (SMA). SMA is a key indicator of price stability and long-term bullish trends. ENR closed yesterday’s trading session at $31.71, ahead of its 200-day and 50-day SMA of $29.39 and $30.13, respectively. This technical strength, along with sustained momentum, reflects positive market sentiment and investor confidence in ENR's financial health and growth prospects.
Shares of the company have seen a decent price surge over the past six months, climbing 13.2% and surpassing the Zacks industry’s 7.5% growth. This leading manufacturer and distributor of batteries and lighting products is inching toward its 52-week high of $36.73 attained on Nov. 14, 2023, thus reflecting strong investor confidence and market optimism about its future.
Image Source: Zacks Investment Research
From a valuation perspective, the stock presents an attractive opportunity, trading at a discount relative to the industry benchmark. With a forward 12-month price-to-sales ratio of 0.79, which is below the industry average of 1.46 in the past year, the stock offers compelling value for investors seeking exposure to the sector. It currently has a Value Score of B, further validating its appeal.
Image Source: Zacks Investment Research
ENR’s Strategic Initiatives Boost Efficiency & Drive Growth
Energizer is enhancing brand loyalty through targeted pricing strategies and promotions, ensuring profitability while increasing market share. Central to this strategy is Project Momentum, a cost-saving and operational efficiency initiative. In the third quarter of fiscal 2024, Project Momentum generated $14 million in savings, improving the gross margin by 270 basis points to 41.5%.
Energizer's market expansion focuses on utilizing its global distribution network to accelerate growth in developing markets. The company is driving innovation across product lines and introducing new solutions in categories like portable power and auto care to meet evolving consumer needs. This emphasis on innovation is expected to strengthen its market position and support sustained growth.
A core element of Energizer’s financial strategy is debt reduction. In the past two years, the company has repaid more than $430 million in debt, significantly lowering leverage and improving financial stability. This disciplined approach has reduced financial risks, bolstered the balance sheet and positioned ENR for long-term success.
Strong performance in the Auto Care and Battery segments has also driven growth. The Auto Care segment saw a 2.2% revenue increase and a 470-basis point rise in the profit margin while the Battery segment posted 6.2% profit growth in the fiscal third quarter. These results highlight Energizer's ability to effectively manage its diverse portfolio and drive performance in key business areas.
Image Source: Zacks Investment Research
Estimate Revisions Favor ENR Stock
The Zacks Consensus Estimate for earnings per share has been revised upward, reflecting the positive sentiment around Energizer. Over the past 60 days, analysts have increased their estimates for the current year by 6 cents to $3.27 per share and the next year by 14 cents to $3.54. These estimates indicate year-over-year growth of 5.8% and 8.4%, respectively.
Image Source: Zacks Investment Research
Conclusion
Investors may find Energizer stock attractive due to its strong upward momentum and technical performance, trading above key moving averages that signal positive market sentiment. The company is outperforming its industry peers and nearing its highest point in the past year, reflecting confidence in its future growth. ENR offers a solid value opportunity, trading at a discount compared with industry averages. With strategic initiatives focused on cost savings, operational efficiency and debt reduction, alongside strong performance in key segments like Auto Care and Batteries, ENR is well-positioned for sustained success. The company currently sports a Zacks Rank #1 (Strong Buy).
Other Key Picks
Here, we have highlighted three other top-ranked stocks, namely BRF Brasil Foods SA (BRFS - Free Report) , Kimberly-Clark Corporation (KMB - Free Report) and Ingredion Incorporated (INGR - Free Report) .
BRF Brasil Foods, formerly Perdigao S.A., is a Brazil-based food company. It presently sports a Zacks Rank of 1. BRFS has a trailing four-quarter average earnings surprise of 73.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BRF's current financial-year earnings and sales indicates growth of 256.7% and 14.7%, respectively, from the year-ago figures.
Kimberly-Clark is principally engaged in the manufacture and marketing of a wide range of consumer products. It has a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Kimberly-Clark’s current financial-year earnings indicates growth of 10.4% from the year-ago figure. KMB has a trailing four-quarter average earnings surprise of 12.6%.
Ingredion is an ingredients solutions provider specializing in nature-based sweeteners, starches and nutrition ingredients. The company currently carries a Zacks Rank of 2. INGR has a trailing four-quarter earnings surprise of 11%, on average.
The Zacks Consensus Estimate for INGR’s current financial-year earnings indicates growth of 5.6% from the year-ago number.