Enbridge (ENB) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Enbridge (ENB) closed at $37.33, marking a +1.44% move from the previous day. This change outpaced the S&P 500's 0.93% gain on the day.
Coming into today, shares of the oil and natural gas transportation and power transmission company had gained 3.06% in the past month. In that same time, the Oils-Energy sector lost 4.5%, while the S&P 500 gained 5.84%.
ENB will be looking to display strength as it nears its next earnings release, which is expected to be May 7, 2021. On that day, ENB is projected to report earnings of $0.56 per share, which would represent a year-over-year decline of 9.68%.
ENB's full-year Zacks Consensus Estimates are calling for earnings of $2.05 per share and revenue of $34.25 billion. These results would represent year-over-year changes of +13.26% and +17.08%, respectively.
Investors might also notice recent changes to analyst estimates for ENB. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 1.29% lower. ENB is currently a Zacks Rank #3 (Hold).
Looking at its valuation, ENB is holding a Forward P/E ratio of 18.1. This represents a premium compared to its industry's average Forward P/E of 14.85.
We can also see that ENB currently has a PEG ratio of 3.02. 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. Oil and Gas - Production and Pipelines stocks are, on average, holding a PEG ratio of 3.09 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 166, putting it in the bottom 35% 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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