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

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Enbridge (ENB - Free Report) closed at $42.20 in the latest trading session, marking a +0.52% move from the prior day. This move outpaced the S&P 500's daily gain of 0.34%. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, added 0.02%.

Prior to today's trading, shares of the oil and natural gas transportation and power transmission company had lost 2.8% over the past month. This has lagged the Oils-Energy sector's loss of 0.08% and was narrower than the S&P 500's loss of 7.95% in that time.

Wall Street will be looking for positivity from Enbridge as it approaches its next earnings report date. In that report, analysts expect Enbridge to post earnings of $0.53 per share. This would mark year-over-year growth of 12.77%.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.30 per share and revenue of $44.69 billion. These totals would mark changes of +5.02% and +19.93%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Enbridge. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.12% lower within the past month. 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 18.27. Its industry sports an average Forward P/E of 14.66, so we one might conclude that Enbridge is trading at a premium comparatively.

We can also see that ENB currently has a PEG ratio of 3.04. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Production and Pipelines was holding an average PEG ratio of 4.42 at yesterday's closing price.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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