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

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In the latest trading session, Enbridge (ENB - Free Report) closed at $28.92, marking a -1.5% move from the previous day. This change lagged the S&P 500's 0.35% gain on the day. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, added 0.37%.

Heading into today, shares of the oil and natural gas transportation and power transmission company had lost 0.94% over the past month, outpacing the Oils-Energy sector's loss of 1.93% and lagging the S&P 500's gain of 4.32% in that time.

ENB will be looking to display strength as it nears its next earnings release, which is expected to be November 6, 2020. On that day, ENB is projected to report earnings of $0.41 per share, which would represent a year-over-year decline of 2.38%.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.94 per share and revenue of $28.58 billion, which would represent changes of -3% and -24.24%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for ENB. These revisions help to show the ever-changing nature of 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 2.51% lower. ENB is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, ENB is currently trading at a Forward P/E ratio of 15.13. This valuation marks a premium compared to its industry's average Forward P/E of 13.95.

Meanwhile, ENB's PEG ratio is currently 1.97. 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. ENB's industry had an average PEG ratio of 3.91 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 195, which puts it in the bottom 23% 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.

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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