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Should Value Investors Buy Energizer (ENR) Stock?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Energizer (ENR - Free Report) . ENR is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 9.70 right now. For comparison, its industry sports an average P/E of 18.49. Over the last 12 months, ENR's Forward P/E has been as high as 10.59 and as low as 8.17, with a median of 8.97.

Finally, investors should note that ENR has a P/CF ratio of 9.48. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. ENR's P/CF compares to its industry's average P/CF of 21.38. ENR's P/CF has been as high as 11.18 and as low as 7.94, with a median of 9.50, all within the past year.

These are just a handful of the figures considered in Energizer's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ENR is an impressive value stock right now.


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