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

Zacks Equity Research

Enbridge (ENB) closed the most recent trading day at $36.56, moving +0.8% from the previous trading session. This change outpaced the S&P 500's 0.29% gain on the day. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq gained 0.19%.

Prior to today's trading, shares of the oil and natural gas transportation and power transmission company had gained 2.54% over the past month. This has outpaced the Oils-Energy sector's loss of 2.64% and the S&P 500's gain of 0.32% in that time.

Wall Street will be looking for positivity from ENB as it approaches its next earnings report date. This 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%.

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.

Any recent changes to analyst estimates for ENB should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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. Within the past 30 days, our consensus EPS projection has moved 4.23% higher. ENB is currently a Zacks Rank #3 (Hold).

Digging into valuation, ENB currently has a Forward P/E ratio of 18.1. This valuation marks a premium compared to its industry's average Forward P/E of 17.18.

Investors should also note that ENB has a PEG ratio of 2.83 right now. 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. The Oil and Gas - Production and Pipelines was holding an average PEG ratio of 3.67 at yesterday's closing price.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 228, which puts it in the bottom 11% 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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