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

·3 min read

In the latest trading session, Enbridge (ENB) closed at $40.71, marking a -1.55% move from the previous day. This move lagged the S&P 500's daily loss of 1.13%. At the same time, the Dow lost 1.01%, and the tech-heavy Nasdaq lost 0.18%.

Coming into today, shares of the oil and natural gas transportation and power transmission company had lost 3.77% in the past month. In that same time, the Oils-Energy sector lost 1.89%, while the S&P 500 lost 7.59%.

Enbridge will be looking to display strength as it nears its next earnings release. In that report, analysts expect Enbridge to post earnings of $0.53 per share. This would mark year-over-year growth of 12.77%.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.30 per share and revenue of $44.69 billion. These totals would mark changes of +5.02% and +19.93%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Enbridge. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.12% lower. Enbridge is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Enbridge is currently trading at a Forward P/E ratio of 17.99. This represents a premium compared to its industry's average Forward P/E of 14.58.

It is also worth noting that ENB currently has a PEG ratio of 3. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Production and Pipelines industry currently had an average PEG ratio of 4.32 as of yesterday's close.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 51, putting it in the top 21% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ENB in the coming trading sessions, be sure to utilize Zacks.com.


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