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

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In the latest trading session, Enbridge (ENB - Free Report) closed at $37.51, marking a +0.81% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.21%. Elsewhere, the Dow lost 0.43%, while the tech-heavy Nasdaq added 0.01%.

Heading into today, shares of the oil and natural gas transportation and power transmission company had lost 15.3% over the past month, outpacing the Oils-Energy sector's loss of 15.96% and lagging the S&P 500's loss of 9.7% in that time.

Enbridge will be looking to display strength as it nears its next earnings release. In that report, analysts expect Enbridge to post earnings of $0.53 per share. This would mark year-over-year growth of 12.77%.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.30 per share and revenue of $44.69 billion, which would represent changes of +5.02% and +19.93%, respectively, from the prior 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. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, 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 a Zacks Rank #3 (Hold).

In terms of valuation, Enbridge is currently trading at a Forward P/E ratio of 16.19. Its industry sports an average Forward P/E of 12.99, 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 2.7. 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 3.9 at yesterday's closing price.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 25% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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