Have you been paying attention to shares of Energizer Holdings, Inc . ENR ? Shares have been on the move with the stock up 11.7% over the past month. ENR hit a new 52-week high of $64 in the previous session. Energizer Holdings has gained 24.2% since the start of the year compared to the -5.1% move for the Consumer Staples sector and the -5.7% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on January 31, 2018, Energizer Holdings reported EPS of $1.55 vs.the Zacks Consensus Estimate of $1.42 while it beat the consensus revenue estimate by 1.23%.
For the current fiscal year, Energizer Holdings is expected to post earnings of $3.39 per share on $1.8 billion in revenues. This represents a 13.76% change in EPS on a 2.34% change in revenues. For the next fiscal year, the company is expected to earn $3.67 per share on $1.83 billion in revenues. This represents a year-over-year change of 8.22% and 2.04%, respectively.
Energizer Holdings may be at a 52-week high right now, but what might the future hold for ENR? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Energizer Holdings has a Value Score of C. The stock's Growth and Momentum Scores are C and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 17.6X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 15.6X versus its peer group's average of 14.4X. Additionally, the stock has a PEG ratio of 1.48. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Energizer Holdings, Inc. Price and Consensus
Energizer Holdings, Inc. Price and Consensus | Energizer Holdings, Inc. Quote
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Energizer Holdings currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 or 2 (Buy) and Style Scores of A or B, it looks as if Energizer Holdings fits the bill. Thus, it seems as though ENR shares could have a bit more room to run in the near term.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Energizer Holdings, Inc. (ENR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research