Enbridge (ENB) Gains But Lags Market: What You Should Know
In the latest trading session, Enbridge (ENB) closed at $37.88, marking a +1.91% move from the previous day. The stock lagged the S&P 500's daily gain of 2.37%. Elsewhere, the Dow gained 2.47%, while the tech-heavy Nasdaq lost 0.07%.
Prior to today's trading, shares of the oil and natural gas transportation and power transmission company had lost 7.24% over the past month. This has lagged the Oils-Energy sector's gain of 4.35% and the S&P 500's loss of 4.82% in that time.
Enbridge will be looking to display strength as it nears its next earnings release, which is expected to be November 4, 2022. In that report, analysts expect Enbridge to post earnings of $0.52 per share. This would mark year-over-year growth of 10.64%.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.26 per share and revenue of $40.08 billion. These totals would mark changes of +3.2% and +7.54%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Enbridge. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.65% lower. Enbridge currently has a Zacks Rank of #3 (Hold).
Investors should also note Enbridge's current valuation metrics, including its Forward P/E ratio of 16.45. This valuation marks a premium compared to its industry's average Forward P/E of 14.78.
Also, we should mention that ENB has a PEG ratio of 2.74. 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. Oil and Gas - Production and Pipelines stocks are, on average, holding a PEG ratio of 3.84 based on yesterday's closing prices.
The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 42, which puts it in the top 17% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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