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Enbridge (ENB) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

Enbridge (ENB) closed at $36.43 in the latest trading session, marking a -0.57% move from the prior day. This move lagged the S&P 500's daily loss of 0.08%. Elsewhere, the Dow lost 0.07%, while the tech-heavy Nasdaq lost 0.59%.

Heading into today, shares of the oil and natural gas transportation and power transmission company had gained 4.45% over the past month, outpacing the Oils-Energy sector's gain of 0.33% and the S&P 500's gain of 2.7% in that time.

ENB will be looking to display strength as it nears its next earnings release, which is expected to be November 8, 2019. On that day, ENB is projected to report earnings of $0.40 per share, which would represent a year-over-year decline of 4.76%.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.06 per share and revenue of $37.74 billion. These totals would mark changes of +0.49% and -1.94%, respectively, from last year.

Any recent changes to analyst estimates for ENB should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 7.98% higher. ENB is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, ENB is holding a Forward P/E ratio of 17.76. For comparison, its industry has an average Forward P/E of 17.83, which means ENB is trading at a discount to the group.

Meanwhile, ENB's PEG ratio is currently 2.78. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Production and Pipelines industry currently had an average PEG ratio of 3.63 as of yesterday's close.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 217, which puts it in the bottom 15% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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