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

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Enbridge (ENB - Free Report) closed at $36.66 in the latest trading session, marking a +0.19% move from the prior day. This move outpaced the S&P 500's daily loss of 0.46%. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq lost 0.63%.

Heading into today, shares of the oil and natural gas transportation and power transmission company had lost 1.75% over the past month, lagging the Oils-Energy sector's gain of 0.78% and the S&P 500's gain of 1.08% in that time.

Wall Street will be looking for positivity from ENB as it approaches its next earnings report date. In that report, analysts expect ENB to post earnings of $0.48 per share. This would mark a year-over-year decline of 41.46%.

ENB's full-year Zacks Consensus Estimates are calling for earnings of $1.72 per share and revenue of $35.96 billion. These results would represent year-over-year changes of -16.1% and -6.57%, respectively.

It is also important to note the recent changes to analyst estimates for ENB. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 0.67% lower. ENB is currently a Zacks Rank #3 (Hold).

In terms of valuation, ENB is currently trading at a Forward P/E ratio of 21.25. For comparison, its industry has an average Forward P/E of 17.19, which means ENB is trading at a premium to the group.

It is also worth noting that ENB currently has a PEG ratio of 2.36. 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. The Oil and Gas - Production and Pipelines was holding an average PEG ratio of 2.54 at yesterday's closing price.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 170, putting it in the bottom 34% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

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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