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

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Enbridge (ENB - Free Report) closed the most recent trading day at $41.66, moving -0.22% from the previous trading session. This move lagged the S&P 500's daily gain of 0.08%. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq lost 4.81%.

Heading into today, shares of the oil and natural gas transportation and power transmission company had gained 12.84% over the past month, lagging the Oils-Energy sector's gain of 13.24% and outpacing the S&P 500's gain of 0.64% in that time.

Enbridge will be looking to display strength as it nears its next earnings release, which is expected to be February 11, 2022. In that report, analysts expect Enbridge to post earnings of $0.62 per share. This would mark year-over-year growth of 44.19%.

Any recent changes to analyst estimates for Enbridge should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.31% lower. Enbridge is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Enbridge is currently trading at a Forward P/E ratio of 17. Its industry sports an average Forward P/E of 14.12, so we one might conclude that Enbridge is trading at a premium comparatively.

Investors should also note that ENB has a PEG ratio of 2.83 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. Oil and Gas - Production and Pipelines stocks are, on average, holding a PEG ratio of 5.14 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 109, putting it in the top 43% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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