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Here's Why Enbridge (ENB) is an Attractive Investment Bet Now

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·3 min read
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Enbridge Inc. ENB has witnessed upward earnings estimate revisions for 2021 and 2022 in the past 30 days. Also, this midstream energy company is likely to see earnings growth of 20.4% and 16.3%, respectively, in 2021 and 2022.

Factors Favoring the Stock

The company, currently carrying a Zacks Rank #2 (Buy), has an extensive network of pipeline assets that are responsible for transporting roughly 25% of North American crude oil production. The midstream properties are also responsible for carrying as much as 20% of natural gas that are consumed by Americans. In Ontario and Quebec, the company is dedicatedly serving 3.8 million retail customers through its Gas Distribution and Storage operations.

With significant portion of its assets being contracted by shippers for long term, the company’s business model is less exposed to volatility in oil and gas prices owing to the coronavirus pandemic. Underpinned by long-term contracts, Enbridge’s business model also has considerably lower volume risk exposure.

The company has estimated roughly C$10-billion growth capital projects to be placed into service in 2021. Moreover, from 2021 to 2023, the midstream player expects C$17 billion in growth capital projects to be executed. Notably, the company expects significant growth in visible cashflow through 2023 from these secured midstream developments.

Enbridge Inc Price

Enbridge Inc Price
Enbridge Inc Price

Enbridge Inc price | Enbridge Inc Quote

Other Stocks to Consider

Other prospective players in the energy space include Whiting Petroleum Corporation WLL, Extraction Oil & Gas, Inc. XOG and Oasis Petroleum Inc. OAS. All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.

Extraction is expected to witness earnings growth of 450.8% in 2021.

Oasis Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.

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Enbridge Inc (ENB) : Free Stock Analysis Report

Oasis Petroleum Inc. (OAS) : Free Stock Analysis Report

Whiting Petroleum Corporation (WLL) : Free Stock Analysis Report

Extraction Oil & Gas, Inc. (XOG) : Free Stock Analysis Report

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