In the latest trading session, Enbridge (ENB) closed at $35.69, marking a +0.2% move from the previous day. This change lagged the S&P 500's 1% gain on the day.
Coming into today, shares of the oil and natural gas transportation and power transmission company had gained 1.31% in the past month. In that same time, the Oils-Energy sector lost 2.49%, while the S&P 500 lost 1.22%.
Investors will be hoping for strength from ENB as it approaches its next earnings release, which is expected to be November 8, 2019. In that report, analysts expect ENB to post earnings of $0.40 per share. This would mark a year-over-year decline of 4.76%.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2 per share and revenue of $37.74 billion. These totals would mark changes of -2.44% and -1.94%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for ENB. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 3.69% higher within the past month. ENB is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that ENB has a Forward P/E ratio of 17.78 right now. This represents a premium compared to its industry's average Forward P/E of 16.85.
Also, we should mention that ENB has a PEG ratio of 2.78. 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. ENB's industry had an average PEG ratio of 3.59 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 160, putting it in the bottom 38% 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.
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