Enbridge (ENB) Outpaces Stock Market Gains: What You Should Know
Enbridge (ENB) closed at $47.11 in the latest trading session, marking a +0.64% move from the prior day. This change outpaced the S&P 500's 0.31% gain on the day. Meanwhile, the Dow gained 0.05%, and the Nasdaq, a tech-heavy index, added 0.14%.
Coming into today, shares of the oil and natural gas transportation and power transmission company had gained 3.04% in the past month. In that same time, the Oils-Energy sector gained 11.52%, while the S&P 500 lost 1.38%.
Enbridge will be looking to display strength as it nears its next earnings release. On that day, Enbridge is projected to report earnings of $0.57 per share, which would represent year-over-year growth of 3.64%. Our most recent consensus estimate is calling for quarterly revenue of $10.02 billion, up 12.45% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.38 per share and revenue of $69.1 billion, which would represent changes of +8.68% and +85.42%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Enbridge. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.17% lower. Enbridge is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Enbridge is holding a Forward P/E ratio of 19.68. For comparison, its industry has an average Forward P/E of 17.15, which means Enbridge is trading at a premium to the group.
Also, we should mention that ENB has a PEG ratio of 3.28. 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 4.56 based on yesterday's closing prices.
The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 44, putting it in the top 18% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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