Trade-Ideas: Energizer Holdings (ENR) Is Today's New Lifetime High Stock

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.

Trade-Ideas LLC identified Energizer Holdings ( ENR) as a new lifetime high 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 $59.6 million.
  • ENR has traded 15,781 shares today.
  • ENR is trading at a new lifetime high.

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More details on ENR:

Energizer Holdings, Inc. manufactures and markets primary batteries, portable lighting, and personal care products in the United States and internationally. The company operates through Personal Care and Household Products divisions. The stock currently has a dividend yield of 1.5%. ENR has a PE ratio of 24.1. Currently there are 8 analysts that rate Energizer Holdings a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Energizer Holdings has been 461,600 shares per day over the past 30 days. Energizer has a market cap of $8.5 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.79 and a short float of 5.5% with 7.79 days to cover. Shares are up 9.5% year-to-date as of the close of trading on Friday.

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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, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The debt-to-equity ratio is somewhat low, currently at 0.95, 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 1.12, which illustrates the ability to avoid short-term cash problems.
  • The gross profit margin for ENERGIZER HOLDINGS INC is rather high; currently it is at 50.32%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 10.12% trails the industry average.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. 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.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 9.0%. Since the same quarter one year prior, revenues slightly dropped by 6.8%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • ENERGIZER HOLDINGS INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, ENERGIZER HOLDINGS INC reported lower earnings of $5.67 versus $6.46 in the prior year. This year, the market expects an improvement in earnings ($6.95 versus $5.67).

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