Energizer Holdings Inc. (ENR) appears to be an attractive value investment, trading at a forward 12-month price-to-earnings (P/E) ratio of 8.22, significantly lower compared with the industry's average of 18.91. This indicates that ENR is undervalued relative to its industry peers, offering potential upside for investors. ENR's strong Value Score of A further highlights its appeal as a potential investment, underscoring its affordability and attractiveness in terms of valuation. For value-focused investors, ...

Core Insights - Zacks Premium provides tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores rate stocks using an alphabetic system (A to F) based on value, growth, and momentum, helping investors identify stocks likely to outperform the market [3][4] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [3] - The Growth Score emphasizes a company's financial health and future growth potential, analyzing earnings and cash flow [4] - The Momentum Score assesses price trends and earnings estimates to identify stocks with upward momentum [4] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for stock selection [5] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in building successful portfolios [6] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7] - There are over 800 top-rated stocks available, making it essential for investors to utilize Style Scores for effective selection [8] Investment Strategy - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with a 3 (Hold) rank should also have A or B Scores to maximize upside potential [9] - The direction of earnings estimate revisions is crucial; stocks with lower ranks (e.g., 4 or 5) may still have good Style Scores but are likely to decline in price [10] Company Spotlight: Energizer Holdings - Energizer Holdings Inc. is a leading manufacturer of batteries and lighting products, holding a 1 (Strong Buy) Zacks Rank and a VGM Score of A [11] - The company has a Momentum Style Score of A, with a 0.2% increase in shares over the past four weeks and upward revisions in earnings estimates for fiscal 2024 [12] - The Zacks Consensus Estimate for Energizer's earnings has risen by $0.05 to $3.27 per share, with an average earnings surprise of 8.5% [12]

Core Viewpoint - Energizer Holdings reported mixed results for Q3 fiscal 2024, with adjusted earnings exceeding estimates while net sales fell short, indicating potential challenges ahead despite year-over-year growth in both metrics [2][3]. Financial Performance - Adjusted earnings per share were 79 cents, surpassing the Zacks Consensus Estimate of 67 cents, and reflecting a 46.3% increase from the previous year [3]. - Net sales reached $701.4 million, slightly below the Zacks Consensus Estimate of $705 million, but up 0.3% year-over-year [3]. - Organic sales increased by 1.2% year-over-year in Q3 [3]. Segment Performance - The Battery & Lights segment saw a revenue decline of 0.4% to $509.1 million, but segment profit rose 6.2% to $129.4 million [6]. - The Auto Care segment's revenues increased by 2.2% to $192.3 million, with segment profit surging 54% to $26.8 million [6]. Margin Analysis - Adjusted gross margin expanded by 270 basis points to 41.5%, driven by Project Momentum savings of approximately $14 million and reduced input costs [7]. - Adjusted SG&A expenses rose 4.5% year-over-year to $118.4 million, influenced by higher labor costs and increased travel expenses, although mitigated by savings from Project Momentum [8]. Cash Flow and Debt - As of June 30, 2024, cash and cash equivalents stood at $146.7 million, with long-term debt at $3.21 billion [9]. - The company paid down $150 million of debt during the fiscal third quarter, resulting in a net debt to adjusted EBITDA ratio of 5x [9]. Future Outlook - For fiscal 2024, Energizer anticipates organic revenues to decline by approximately 2%, with adjusted EBITDA projected between $610 million and $620 million [10]. - The company expects adjusted earnings per share to range from $3.20 to $3.30, with gross margin improvements of over 150 basis points year-over-year [10]. - For the fiscal fourth quarter, organic revenues are expected to be flat, with adjusted earnings per share anticipated between $1.10 and $1.20 [11]. Market Position - Despite recent downward revisions in estimates, Energizer holds a Zacks Rank 1 (Strong Buy), indicating expectations for above-average returns in the coming months [14]. - The company has a strong VGM Score of A, reflecting favorable growth and value metrics [13].

Energizer Holdings Inc. (ENR) has developed a comprehensive strategic vision to achieve sustainable growth and profitability. This plan focuses on enhancing consumer engagement, expanding market presence, driving innovation, reducing debt and improving operational efficiency. The company's initiatives, such as Project Momentum, underline its commitment to improving margins and strengthening its financial position. By staying agile in a competitive market, Energizer is well-positioned to navigate challenges ...

Energizer Holdings Inc ENR shares were climbing in early trading on Tuesday. The company is poised to benefit from a "return to stability" in the battery category and the U.S. consumer was "healthy," according to Truist Securities. Analyst Bill Chappell upgraded the rating for Energizer Holdings from Hold to Buy, while raising the price target from $30 to $40. The Energizer Holdings Thesis: The consumer battery category, which had been under pressure due to stiff competition and the proliferation of smartph ...

Energizer Holdings (ENR) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system. ...

Energizer Holdings, Inc. (ENR) reported third-quarter fiscal 2024 results, wherein its top line lagged the Zacks Consensus Estimates but the bottom line surpassed the same. However, both metrics increased year over year. Energizer's strategic initiatives include Project Momentum for margin recovery, cash flow restoration and debt reduction. The company focuses on market expansion by leveraging its global platform, investing in innovation to drive growth, enhancing digital commerce capabilities and improving ...

Energizer Holdings (ENR) reported $701.4 million in revenue for the quarter ended June 2024, representing a year-over-year increase of 0.3%. EPS of $0.79 for the same period compares to $0.54 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $705.12 million, representing a surprise of -0.53%. The company delivered an EPS surprise of +17.91%, with the consensus EPS estimate being $0.67. While investors scrutinize revenue and earnings changes year-over-year and how they compare with ...

Energizer Holdings (ENR) came out with quarterly earnings of $0.79 per share, beating the Zacks Consensus Estimate of $0.67 per share. This compares to earnings of $0.54 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 17.91%. A quarter ago, it was expected that this battery and personal care products company would post earnings of $0.67 per share when it actually produced earnings of $0.72, delivering a surprise of 7.46%. Ove ...

For Immediate Release Industry: Consumer Products Companies in the Zacks Consumer Products – Staples industry have been benefiting from stable product demand as consumers manage to save for essentials, even during tough economic phases. Efforts to boost revenues through innovation, product launches and expansion into new channels, such as e-commerce, have proven successful. About the Industry Companies in the Consumer Products – Staples universe offer products to supermarkets, drug/grocery stores, departmen ...