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

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In the latest trading session, Enbridge (ENB - Free Report) closed at $40.59, marking a -0.32% move from the previous day. This change lagged the S&P 500's daily gain of 1.47%. Meanwhile, the Dow lost 0.11%, and the Nasdaq, a tech-heavy index, added 7.94%.

Coming into today, shares of the oil and natural gas transportation and power transmission company had gained 2.39% in the past month. In that same time, the Oils-Energy sector gained 1.59%, while the S&P 500 gained 7.41%.

Enbridge will be looking to display strength as it nears its next earnings release, which is expected to be February 10, 2023. The company is expected to report EPS of $0.56, up 3.7% from the prior-year quarter.

Any recent changes to analyst estimates for Enbridge should also be noted by investors. Recent revisions tend to reflect the latest near-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 remained stagnant within the past month. Enbridge is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Enbridge has a Forward P/E ratio of 17.83 right now. This represents a premium compared to its industry's average Forward P/E of 16.63.

It is also worth noting that ENB currently has a PEG ratio of 2.97. 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 4.15 as of yesterday's close.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 71, putting it in the top 29% 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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