Back to top

Image: Bigstock

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

Read MoreHide Full Article

Enbridge (ENB - Free Report) ended the recent trading session at $35.67, demonstrating a -0.25% swing from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.26%. Meanwhile, the Dow experienced a rise of 0.18%, and the technology-dominated Nasdaq saw an increase of 0.35%.

Heading into today, shares of the oil and natural gas transportation and power transmission company had lost 5.4% over the past month, lagging the Oils-Energy sector's loss of 3.91% and the S&P 500's gain of 3.25% in that time.

Investors will be eagerly watching for the performance of Enbridge in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.47, marking a 7.84% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $6.19 billion, showing a 20.32% drop compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $2.11 per share and a revenue of $25.89 billion, demonstrating changes of +1.93% and -20.11%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Enbridge. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.41% lower. 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 16.97. This represents no noticeable deviation compared to its industry's average Forward P/E of 16.97.

Also, we should mention that ENB has a PEG ratio of 3.39. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Oil and Gas - Production and Pipelines stocks are, on average, holding a PEG ratio of 3.25 based on yesterday's closing prices.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 50, this industry ranks in the top 20% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Enbridge Inc (ENB) - free report >>

Published in