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Enbridge (ENB) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Enbridge (ENB) closed at $35.17 in the latest trading session, marking a +1.12% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.91%. At the same time, the Dow added 0.7%, and the tech-heavy Nasdaq gained 1.02%.

Prior to today's trading, shares of the oil and natural gas transportation and power transmission company had gained 0.17% over the past month. This has outpaced the Oils-Energy sector's loss of 2.32% and the S&P 500's loss of 2.74% in that time.

Investors will be hoping for strength from ENB as it approaches its next earnings release. On that day, ENB is projected to report earnings of $0.40 per share, which would represent a year-over-year decline of 4.76%.

ENB's full-year Zacks Consensus Estimates are calling for earnings of $2 per share and revenue of $37.74 billion. These results would represent year-over-year changes of -2.44% and -1.94%, respectively.

Investors might also notice recent changes to analyst estimates for ENB. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate has moved 5.55% higher. ENB is currently a Zacks Rank #3 (Hold).

In terms of valuation, ENB is currently trading at a Forward P/E ratio of 17.36. This represents a premium compared to its industry's average Forward P/E of 16.58.

Meanwhile, ENB's PEG ratio is currently 2.71. 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 3.56 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 224, which puts it in the bottom 13% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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