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Enbridge (ENB) Gains As Market Dips: What You Should Know

Zacks Equity Research

Enbridge (ENB) closed at $36.05 in the latest trading session, marking a +0.9% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.53%. At the same time, the Dow lost 0.26%, and the tech-heavy Nasdaq lost 1.13%.

Coming into today, shares of the oil and natural gas transportation and power transmission company had gained 7.23% in the past month. In that same time, the Oils-Energy sector gained 7.67%, while the S&P 500 gained 3.59%.

Investors will be hoping for strength from ENB as it approaches its next earnings release. In that report, analysts expect ENB to post earnings of $0.36 per share. This would mark a year-over-year decline of 14.29%.

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.

It is also important to note the recent changes to analyst estimates for ENB. These revisions help to show the ever-changing nature of near-term business trends. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.63% higher. ENB currently has a Zacks Rank of #3 (Hold).

Investors should also note ENB's current valuation metrics, including its Forward P/E ratio of 17.83. This valuation marks a premium compared to its industry's average Forward P/E of 16.8.

Investors should also note that ENB has a PEG ratio of 2.81 right now. 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. ENB's industry had an average PEG ratio of 3.65 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 155, putting it in the bottom 40% 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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