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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 $35.54, moving +1.37% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.38%. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq added 0.73%.

Prior to today's trading, shares of the oil and natural gas transportation and power transmission company had lost 5.58% over the past month. This has lagged the Oils-Energy sector's gain of 3.31% and the S&P 500's gain of 3.19% in that time.

Wall Street will be looking for positivity from ENB as it approaches its next earnings report date. On that day, ENB is projected to report earnings of $0.39 per share, which would represent a year-over-year decline of 37.1%.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.89 per share and revenue of $37.15 billion. These totals would mark changes of -7.8% and -3.45%, respectively, from last year.

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. 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.

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. The Zacks Consensus EPS estimate has moved 0.43% lower within the past month. ENB is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note ENB's current valuation metrics, including its Forward P/E ratio of 18.55. This represents a premium compared to its industry's average Forward P/E of 15.5.

We can also see that ENB currently has a PEG ratio of 2.16. 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. The Oil and Gas - Production and Pipelines was holding an average PEG ratio of 4.41 at yesterday's closing price.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 101, putting it in the top 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.

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


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