Edgewell Personal Care Stock Surges 8.7% Amid Turnaround Hopes
NEW YORK – Shares of Edgewell Personal Care (NYSE: EPC) jumped 8.7% over the past week, marking a notable rally for a stock that has been under prolonged pressure. The gain, which added approximately $76 million to the company’s market capitalization, comes amid cautious optimism that the maker of Schick razors and Hawaiian Tropic sunscreen may be nearing an inflection point after a punishing 53% decline over the past three years.
While the one-month performance shows a 21% rebound, long-term shareholders remain wary. The broader context reveals a challenging journey: annual earnings per share (EPS) have contracted by an average of 34% over the same three-year period, a steeper fall than the 22% compound annual drop in the share price. This divergence suggests the market may be pricing in a potential recovery or stability in future earnings, despite the recent poor financial performance.
"The recent uptick is a welcome relief, but it's a bounce in a deep hole," said Michael Reeves, a portfolio manager at Horizon Advisors. "The key question is whether management can execute a durable turnaround in a competitive personal care market. The dividend has provided some cushion, but fundamentals need to improve."
Indeed, when dividends are factored in, the total shareholder return (TSR) over three years is -50%, which, while grim, is less severe than the share price decline alone. This highlights the role of Edgewell's dividend yield in softening the blow for income-focused investors during the downturn.
The stock's recent strength contrasts sharply with its 34% loss for the year (including dividends), significantly underperforming the S&P 500's 14% gain. This underperformance underscores the company-specific challenges Edgewell faces, which may include brand relevance, pricing pressure, and supply chain costs.
A more skeptical take came from Lisa Torrence, an independent market analyst known for her blunt commentary. "This is a dead-cat bounce in a sector being disrupted," she stated. "A one-week pop doesn't erase years of mismanagement and erosion. Investors chasing this are ignoring at least four clear warning signs, one of which is seriously concerning. The dividend won't save you if the core business keeps shrinking."
Other observers urged a balanced perspective. David Chen, a retail sector analyst at a mid-west brokerage, noted, "The valuation has become very compressed. For a company with stable household brands, any positive operational surprise could drive a re-rate. The risk-reward is becoming more symmetrical."
Meanwhile, Sarah Gibson, a long-term retail investor, shared a personal view: "I've held through the decline for the yield. This week's move feels different, like maybe the worst is priced in. I'm not adding yet, but I'm not selling here either."
As with any potential turnaround story, the path ahead is uncertain. Edgewell's leadership faces the dual task of stabilizing earnings while navigating inflationary pressures and shifting consumer preferences. The coming quarters will be critical in determining whether last week's surge is a fleeting rally or the early sign of a genuine recovery.
Market performance data in this article reflects the weighted average of stocks trading on major U.S. exchanges.