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

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Enbridge (ENB - Free Report) closed the most recent trading day at $36.19, moving -1.36% from the previous trading session. This move lagged the S&P 500's daily loss of 0.77%. Meanwhile, the Dow lost 0.65%, and the Nasdaq, a tech-heavy index, lost 2.23%.

Heading into today, shares of the oil and natural gas transportation and power transmission company had gained 2.17% over the past month, outpacing the Oils-Energy sector's gain of 0.78% and lagging the S&P 500's gain of 4.66% in that time.

Investors will be hoping for strength from Enbridge as it approaches its next earnings release. The company is expected to report EPS of $0.52, down 1.89% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.41 billion, down 28.44% from the prior-year quarter.

ENB's full-year Zacks Consensus Estimates are calling for earnings of $2.20 per share and revenue of $33.87 billion. These results would represent year-over-year changes of +1.85% and -17.46%, respectively.

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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.23% lower. Enbridge currently has a Zacks Rank of #3 (Hold).

Investors should also note Enbridge's current valuation metrics, including its Forward P/E ratio of 16.68. This represents a premium compared to its industry's average Forward P/E of 15.58.

Also, we should mention that ENB has a PEG ratio of 2.78. 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. Oil and Gas - Production and Pipelines stocks are, on average, holding a PEG ratio of 3.74 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 103, putting it in the top 41% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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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