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

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In the latest trading session, Enbridge (ENB - Free Report) closed at $41.34, marking a +1.47% move from the previous day. This move outpaced the S&P 500's daily gain of 0.92%. Meanwhile, the Dow gained 0.51%, and the Nasdaq, a tech-heavy index, added 0.54%.

Coming into today, shares of the oil and natural gas transportation and power transmission company had gained 8.5% in the past month. In that same time, the Oils-Energy sector gained 4.11%, while the S&P 500 lost 0.85%.

Enbridge will be looking to display strength as it nears its next earnings release. In that report, analysts expect Enbridge to post earnings of $0.62 per share. This would mark year-over-year growth of 44.19%.

Investors might also notice recent changes to analyst estimates for Enbridge. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 0.47% lower. Enbridge is currently a Zacks Rank #3 (Hold).

Digging into valuation, Enbridge currently has a Forward P/E ratio of 16.66. For comparison, its industry has an average Forward P/E of 12.5, which means Enbridge is trading at a premium to the group.

Also, we should mention that ENB has a PEG ratio of 2.78. 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. Oil and Gas - Production and Pipelines stocks are, on average, holding a PEG ratio of 4.95 based on yesterday's closing prices.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 105, putting it in the top 42% 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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