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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 $41.82, moving +1.41% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.13%. At the same time, the Dow added 1.68%, and the tech-heavy Nasdaq gained 0.43%.

Prior to today's trading, shares of the oil and natural gas transportation and power transmission company had gained 3.77% over the past month. This has outpaced the Oils-Energy sector's loss of 10.86% and the S&P 500's gain of 2.1% in that time.

ENB will be looking to display strength as it nears its next earnings release, which is expected to be February 14, 2020. On that day, ENB is projected to report earnings of $0.50 per share, which would represent year-over-year growth of 2.04%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.53 billion, up 8.9% from the year-ago period.

Investors should also note any recent changes to analyst estimates for ENB. 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.43% higher. ENB is holding a Zacks Rank of #2 (Buy) right now.

Investors should also note ENB's current valuation metrics, including its Forward P/E ratio of 20.72. This represents a premium compared to its industry's average Forward P/E of 17.91.

Investors should also note that ENB has a PEG ratio of 2.74 right now. 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. ENB's industry had an average PEG ratio of 4.25 as of yesterday's close.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 81, putting it in the top 32% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow ENB in the coming trading sessions, be sure to utilize Zacks.com.

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