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Enbridge (ENB) Rises As Market Takes a Dip: Key Facts

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In the latest market close, Enbridge (ENB - Free Report) reached $36.02, with a +0.5% movement compared to the previous day. The stock's change was more than the S&P 500's daily loss of 0.11%. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, lost 0.41%.

The oil and natural gas transportation and power transmission company's shares have seen an increase of 4.7% over the last month, surpassing the Oils-Energy sector's gain of 3.56% and the S&P 500's gain of 2.7%.

The investment community will be closely monitoring the performance of Enbridge in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.62, marking a 1.59% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $9.86 billion, up 10.44% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.19 per share and revenue of $34.34 billion, which would represent changes of +5.8% and +5.97%, respectively, from the prior 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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 1.93% higher. Right now, Enbridge possesses a Zacks Rank of #3 (Hold).

Looking at its valuation, Enbridge is holding a Forward P/E ratio of 16.38. This signifies a premium in comparison to the average Forward P/E of 15.46 for its industry.

It is also worth noting that ENB currently has a PEG ratio of 3.28. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Oil and Gas - Production and Pipelines industry stood at 4.37 at the close of the market yesterday.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 174, finds itself in the bottom 31% echelons of all 250+ industries.

The Zacks Industry Rank is ordered 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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