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Enbridge (ENB) Gains But Lags Market: What You Should Know

Zacks Equity Research

Enbridge (ENB) closed at $33.60 in the latest trading session, marking a +0.12% move from the prior day. The stock lagged the S&P 500's daily gain of 0.74%. Meanwhile, the Dow gained 0.19%, and the Nasdaq, a tech-heavy index, added 1.11%.

Coming into today, shares of the oil and natural gas transportation and power transmission company had lost 5.57% in the past month. In that same time, the Oils-Energy sector lost 1.9%, while the S&P 500 gained 3.18%.

Wall Street will be looking for positivity from ENB as it approaches its next earnings report date. This is expected to be August 2, 2019. In that report, analysts expect ENB to post earnings of $0.43 per share. This would mark a year-over-year decline of 30.65%.

ENB's full-year Zacks Consensus Estimates are calling for earnings of $1.96 per share and revenue of $37.15 billion. These results would represent year-over-year changes of -4.39% and -3.45%, respectively.

Investors should also note any recent changes to analyst estimates for ENB. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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 2.94% higher. ENB is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that ENB has a Forward P/E ratio of 17.14 right now. For comparison, its industry has an average Forward P/E of 16.42, which means ENB is trading at a premium to the group.

Meanwhile, ENB's PEG ratio is currently 2.55. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Production and Pipelines industry currently had an average PEG ratio of 4.33 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 49, which puts it in the top 20% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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