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

Zacks Equity Research
Olympic Steel (ZEUS) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

Enbridge (ENB) closed at $36.31 in the latest trading session, marking a +0.58% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.07%. Elsewhere, the Dow lost 0.21%, while the tech-heavy Nasdaq added 0.13%.

Coming into today, shares of the oil and natural gas transportation and power transmission company had gained 4.03% in the past month. In that same time, the Oils-Energy sector gained 2.56%, while the S&P 500 gained 5.36%.

Wall Street will be looking for positivity from ENB as it approaches its next earnings report date. This is expected to be February 15, 2019. The company is expected to report EPS of $0.45, down 6.25% from the prior-year quarter.

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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. The Zacks Consensus EPS estimate has moved 4.02% higher within the past month. ENB is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, ENB is currently trading at a Forward P/E ratio of 20.95. This valuation marks a premium compared to its industry's average Forward P/E of 16.56.

Meanwhile, ENB's PEG ratio is currently 2.2. 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 was holding an average PEG ratio of 2.64 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 191, which puts it in the bottom 26% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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