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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 $39.49, marking a +1.7% move from the previous day. This change outpaced the S&P 500's 0.59% gain on the day. At the same time, the Dow added 0.53%, and the tech-heavy Nasdaq gained 0.45%.

Coming into today, shares of the oil and natural gas transportation and power transmission company had lost 6.32% in the past month. In that same time, the Oils-Energy sector lost 10.01%, while the S&P 500 lost 4.33%.

Wall Street will be looking for positivity from Enbridge as it approaches its next earnings report date. On that day, Enbridge is projected to report earnings of $0.55 per share, which would represent year-over-year growth of 1.85%.

ENB's full-year Zacks Consensus Estimates are calling for earnings of $2.13 per share and revenue of $40.08 billion. These results would represent year-over-year changes of -2.74% and +7.54%, respectively.

Investors should also note any 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. 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. The Zacks Consensus EPS estimate has moved 0.19% lower within the past month. Enbridge currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Enbridge currently has a Forward P/E ratio of 18.25. This represents a premium compared to its industry's average Forward P/E of 14.64.

Meanwhile, ENB's PEG ratio is currently 3.04. 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. ENB's industry had an average PEG ratio of 3.17 as of yesterday's close.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 65, which puts it in the top 26% 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.

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


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