Back to top

Image: Bigstock

Enbridge (ENB) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

Enbridge (ENB - Free Report) closed the most recent trading day at $37.81, moving -0.05% from the previous trading session. This move lagged the S&P 500's daily loss of 0.04%. At the same time, the Dow lost 0.51%, and the tech-heavy Nasdaq gained 0.21%.

Heading into today, shares of the oil and natural gas transportation and power transmission company had gained 3.19% over the past month, outpacing the Oils-Energy sector's gain of 0.47% and lagging the S&P 500's gain of 4.65% in that time.

Investors will be hoping for strength from ENB as it approaches its next earnings release, which is expected to be May 10, 2019. In that report, analysts expect ENB to post earnings of $0.47 per share. This would mark a year-over-year decline of 42.68%.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.71 per share and revenue of $36.12 billion. These totals would mark changes of -16.59% and -6.14%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for ENB. 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.

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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.87% lower within the past month. ENB currently has a Zacks Rank of #3 (Hold).

In terms of valuation, ENB is currently trading at a Forward P/E ratio of 22.17. Its industry sports an average Forward P/E of 17.03, so we one might conclude that ENB is trading at a premium comparatively.

Meanwhile, ENB's PEG ratio is currently 2.56. 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. ENB's industry had an average PEG ratio of 2.74 as of yesterday's close.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 38% 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.

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


See More Zacks Research for These Tickers


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


Enbridge Inc (ENB) - free report >>

Published in