Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Energizer Holdings as such a stock due to the following factors:
- ENR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $70.1 million.
- ENR has traded 79,281 shares today.
- ENR traded in a range 347.8% of the normal price range with a price range of $6.31.
- ENR traded above its daily resistance level (quality: 13 days, meaning that the stock is crossing a resistance level set by the last 13 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in ENR with the Ticky from Trade-Ideas. See the FREE profile for ENR NOW at Trade-Ideas
More details on ENR:
Energizer Holdings, Inc. manufactures and sells primary batteries, portable lighting, and personal care products worldwide. It offers household and specialty batteries, including carbon zinc, alkaline, rechargeable, and lithium batteries. The stock currently has a dividend yield of 1.7%. ENR has a PE ratio of 18.4. Currently there are 7 analysts that rate Energizer Holdings a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Energizer Holdings has been 464,200 shares per day over the past 30 days. Energizer has a market cap of $7.2 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.82 and a short float of 3.9% with 4.42 days to cover. Shares are up 6.3% year-to-date as of the close of trading on Tuesday.
rates Energizer Holdings as a
. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- ENERGIZER HOLDINGS INC has improved earnings per share by 16.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ENERGIZER HOLDINGS INC increased its bottom line by earning $6.46 versus $6.22 in the prior year. This year, the market expects an improvement in earnings ($7.06 versus $6.46).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Household Products industry average. The net income increased by 16.0% when compared to the same quarter one year prior, going from $84.90 million to $98.50 million.
- The debt-to-equity ratio is somewhat low, currently at 0.94, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.29, which illustrates the ability to avoid short-term cash problems.
- The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- You can view the full Energizer Holdings Ratings Report.