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

Zacks Equity Research

In the latest trading session, Enbridge (ENB) closed at $36.51, marking a -1.03% move from the previous day. This change lagged the S&P 500's 0.46% gain on the day. Elsewhere, the Dow gained 0.9%, while the tech-heavy Nasdaq added 0.59%.

Prior to today's trading, shares of the oil and natural gas transportation and power transmission company had gained 7.52% over the past month. This has outpaced the Oils-Energy sector's gain of 3.51% and the S&P 500's gain of 4.04% in that time.

Investors will be hoping for strength from ENB as it approaches its next earnings release. In that report, analysts expect ENB to post earnings of $0.40 per share. This would mark a year-over-year decline of 35.48%.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.97 per share and revenue of $37.15 billion, which would represent changes of -3.9% and -3.45%, respectively, from the prior year.

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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 2.59% higher. ENB is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, ENB is holding a Forward P/E ratio of 18.77. This represents a premium compared to its industry's average Forward P/E of 16.29.

Meanwhile, ENB's PEG ratio is currently 2.79. 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. Oil and Gas - Production and Pipelines stocks are, on average, holding a PEG ratio of 4.62 based on yesterday's closing prices.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 39% 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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