Here's Why ENR Can Be Your Next Value Pick: Key Insights for Investors

Energizer Holdings Inc. ENR stands out as a compelling value play, trading at a forward 12-month price-to-sales ratio of 0.85, below the industry average of 2.44 and the sector average of 7.69. This undervaluation highlights its potential for investors seeking attractive entry points. Furthermore, Energizer’s Value Score of A underscores its appeal as a potential investment.ENR Looks Attractive From a Valuation Standpoint Image Source: Zacks Investment Research Shares of the company are currently trading 12.7% below its 52-week high of $39.51 attained on Dec. 2, 2024, making investors contemplate their next move. In the past six months, the ENR stock has gained 9.8%, outperforming the industry’s 4.7% decline. The company’s enhanced operational efficiency and growth initiatives have also helped it outperform the broader sector’s decline of 7% in the same period.ENR Stock Past Six-Month Performance Image Source: Zacks Investment Research ENR closed yesterday’s trading session at $34.50. The stock is trading above its 100 and 200-day SMAs of $33.55 and $31.22, respectively, highlighting a continued uptrend. This technical strength, along with sustained momentum, indicates positive market sentiment and investors’ confidence in the company’s financial health and growth prospects.ENR Trades Above 100 & 200-Day Moving Averages Image Source: Zacks Investment Research Energizer’s Key Approach to Sustainable Growth & EfficiencyEnergizer is driving sustainable growth through strategic initiatives aimed at enhancing consumer engagement, building brand loyalty and increasing market share, all while prioritizing margin improvement. At the core of this effort is Project Momentum, which has delivered significant cost savings and operational efficiencies.In the fourth quarter of fiscal 2024, Project Momentum contributed to a 220-basis-point improvement in the adjusted gross margin, driven by approximately $18 million in cost savings and favorable input costs, including reductions in commodity and material prices. Energizer's disciplined financial management underpins its sustained growth strategy and strengthens investor confidence in its long-term prospects.To support global revenue growth, Energizer is expanding its distribution network by forging new retail partnerships, increasing shelf space with existing customers, and strengthening its presence in both domestic and international markets.Additionally, the company’s e-commerce channel, which achieved a 15% sales increase in fiscal 2024, is set for further expansion through investments in digital tools and an enhanced online product lineup. This positions Energizer to capture a greater share of the U.S. battery market, wherein e-commerce represents more than 20% of total sales, offering substantial growth opportunities.ENR’s Positive FY25 Outlook Signals Strong Growth ProspectsEnergizer provided an optimistic outlook for fiscal 2025, demonstrating confidence in its growth trajectory. For the full fiscal year, ENR anticipates organic revenue growth of 1-2%, driven by expanded distribution in its Battery and Auto Care segments. The company expects the adjusted gross margin to increase by 50 basis points year over year to more than 41%.Adjusted EBITDA is projected between $625 million and $645 million for fiscal 2025, whereas it reported $612.4 million in the previous year. Adjusted earnings per share (EPS) is forecast between $3.45 and $3.65, up from $3.32 in fiscal 2024, highlighting Energizer’s focus on sustainable growth and operational efficiency.Estimate Revisions Favor ENR StockAnalysts have responded positively to Energizer's prospects, which has been indicated in upward revisions in the Zacks Consensus Estimate for EPS. In the past 60 days, analysts have increased their estimates for the current fiscal year by 1 cent. The consensus estimate for earnings is pegged at $3.58 per share. The consensus estimate for earnings for the next fiscal year has been raised three cents to $3.82 per share.The Zacks Consensus Estimate for the current and the next fiscal years’ sales is pegged at $2.93 billion and $2.97 billion, indicating year-over-year growth of 1.3% and 1.5%, respectively.Find the latest EPS estimates and surprises on Zacks Earnings Calendar. Image Source: Zacks Investment Research How to Play ENR Stock?Energizer presents a strong investment opportunity, trading at an attractive valuation below industry averages, signaling significant undervaluation. The stock has recently outperformed its peers, reflecting strong momentum and investor confidence. Energizer’s Project Momentum, along with improved operational efficiency and strategic growth initiatives in e-commerce and distribution, provides a solid foundation for long-term success.With positive revisions from analysts and a clear path for consistent earnings growth, Energizer is well-positioned to deliver value and attract investors looking for sustainable growth. The company currently carries a Zacks Rank #2 (Buy).Other Key PicksHere, we have highlighted three other top-ranked stocks, namely United Natural Foods, Inc. UNFI, Freshpet Inc. FRPT and US Foods Holding Corp. USFD.United Natural Foods is the leading distributor of natural, organic and specialty food and non-food products in the United States and Canada. It presently flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for UNFI's current fiscal-year earnings and sales indicates growth of 442.9% and 0.3%, respectively, from the year-ago reported figures. UNFI delivered a trailing four-quarter average earnings surprise of 553.1%.Freshpet manufactures and markets natural fresh foods, refrigerated meals and treats for dogs and cats in the United States and Canada. It sports a Zacks Rank of 1 at present. The Zacks Consensus Estimate for Freshpet’s current financial-year earnings and sales indicates growth of 228.6% and 27.2%, respectively, from the year-ago figures. FRPT delivered a trailing four-quarter average earnings surprise of 144.5%.US Foods is a foodservice distributor. The company currently carries a Zacks Rank #2. USFD delivered a negative trailing four-quarter earnings surprise of 0.4%, on average. The Zacks Consensus Estimate for US Foods’ current financial-year earnings and sales indicates growth of 18.6% and 6.4%, respectively, from the year-ago reported figures.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Freshpet, Inc. (FRPT): Free Stock Analysis Report United Natural Foods, Inc. (UNFI): Free Stock Analysis Report US Foods Holding Corp. 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