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Enbridge (ENB) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Enbridge (ENB - Free Report) closed at $39.76, marking a -0.48% move from the previous day. This change lagged the S&P 500's 0.01% loss on the day. Elsewhere, the Dow lost 0.23%, while the tech-heavy Nasdaq added 0.97%.

Coming into today, shares of the oil and natural gas transportation and power transmission company had gained 7.74% in the past month. In that same time, the Oils-Energy sector gained 12.26%, while the S&P 500 gained 6.23%.

Wall Street will be looking for positivity from Enbridge as it approaches its next earnings report date. This is expected to be May 5, 2023. In that report, analysts expect Enbridge to post earnings of $0.62 per share. This would mark a year-over-year decline of 6.06%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.66 billion, down 18.97% from the year-ago period.

ENB's full-year Zacks Consensus Estimates are calling for earnings of $2.25 per share and revenue of $37.13 billion. These results would represent year-over-year changes of +4.17% and -9.51%, respectively.

Any recent changes to analyst estimates for Enbridge should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.82% lower within the past month. Enbridge is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Enbridge's current valuation metrics, including its Forward P/E ratio of 17.73. For comparison, its industry has an average Forward P/E of 14.91, which means Enbridge is trading at a premium to the group.

Meanwhile, ENB's PEG ratio is currently 2.95. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Oil and Gas - Production and Pipelines stocks are, on average, holding a PEG ratio of 4 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 57, putting it in the top 23% 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.

To follow ENB in the coming trading sessions, be sure to utilize Zacks.com.


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