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

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Enbridge (ENB - Free Report) closed at $36.50 in the latest trading session, marking a -1.48% move from the prior day. This change lagged the S&P 500's 0.5% gain on the day. Elsewhere, the Dow gained 0.54%, while the tech-heavy Nasdaq added 0.76%.

Heading into today, shares of the oil and natural gas transportation and power transmission company had gained 3.78% over the past month, outpacing the Oils-Energy sector's gain of 2.26% and the S&P 500's gain of 2.53% in that time.

Investors will be hoping for strength from ENB as it approaches its next earnings release. On that day, ENB is projected to report earnings of $0.44 per share, which would represent a year-over-year decline of 46.34%.

ENB's full-year Zacks Consensus Estimates are calling for earnings of $1.73 per share and revenue of $35.96 billion. These results would represent year-over-year changes of -15.61% and -6.57%, respectively.

Any recent changes to analyst estimates for ENB should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 0.39% higher within the past month. ENB is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note ENB's current valuation metrics, including its Forward P/E ratio of 21.42. This valuation marks a premium compared to its industry's average Forward P/E of 18.51.

We can also see that ENB currently has a PEG ratio of 2.32. 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 was holding an average PEG ratio of 2.67 at yesterday's closing price.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 34% 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.

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


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