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 Energizer Holdings ( ENR) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) 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 $56.4 million.
- ENR has traded 269,812 shares today.
- ENR is trading at 1.63 times the normal volume for the stock at this time of day.
- ENR crossed above its 200-day simple moving average.
'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize on. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success. 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 2.1%. ENR has a PE ratio of 15.6. Currently there are 7 analysts that rate Energizer Holdings a buy, 1 analyst rates it a sell, and 3 rate it a hold. The average volume for Energizer Holdings has been 637,700 shares per day over the past 30 days. Energizer has a market cap of $6.2 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.84 and a short float of 4.3% with 4.77 days to cover. Shares are down 9.3% year-to-date as of the close of trading on Tuesday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Energizer Holdings as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- The debt-to-equity ratio is somewhat low, currently at 0.91, 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 1.32, which illustrates the ability to avoid short-term cash problems.
- ENERGIZER HOLDINGS INC's earnings per share declined by 17.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. 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 ($7.08 versus $6.46).
- 49.52% is the gross profit margin for ENERGIZER HOLDINGS INC which we consider to be strong. Regardless of ENR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 9.68% trails the industry average.
- ENR, with its decline in revenue, slightly underperformed the industry average of 1.2%. Since the same quarter one year prior, revenues slightly dropped by 6.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full Energizer Holdings Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.