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Enbridge (ENB) Increases Yet Falls Behind Market: What Investors Need to Know

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Enbridge (ENB - Free Report) closed the latest trading day at $40.79, indicating a +0.99% change from the previous session's end. This move lagged the S&P 500's daily gain of 1.16%. Elsewhere, the Dow gained 1.2%, while the tech-heavy Nasdaq added 1.16%.

Shares of the oil and natural gas transportation and power transmission company witnessed a gain of 3.96% over the previous month, beating the performance of the Oils-Energy sector with its loss of 0.46% and the S&P 500's gain of 3.48%.

Market participants will be closely following the financial results of Enbridge in its upcoming release. The company is expected to report EPS of $0.45, down 2.17% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $5.77 billion, indicating a 21.33% decrease compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $2.06 per share and a revenue of $25.91 billion, demonstrating changes of -0.48% and -20.03%, respectively, from the preceding year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Enbridge. These recent revisions tend to reflect the evolving nature of short-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. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Enbridge presently features a Zacks Rank of #3 (Hold).

In the context of valuation, Enbridge is at present trading with a Forward P/E ratio of 19.61. This valuation marks a premium compared to its industry's average Forward P/E of 17.7.

It's also important to note that ENB currently trades at a PEG ratio of 3.92. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Production and Pipelines industry had an average PEG ratio of 2.94 as trading concluded yesterday.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 147, which puts it in the bottom 42% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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