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

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In the latest trading session, Enbridge (ENB - Free Report) closed at $32.33, marking a -1.4% move from the previous day. This change lagged the S&P 500's daily loss of 0.39%. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, lost 0.1%.

Coming into today, shares of the oil and natural gas transportation and power transmission company had gained 12.53% in the past month. In that same time, the Oils-Energy sector gained 11.53%, while the S&P 500 gained 4.06%.

Wall Street will be looking for positivity from ENB as it approaches its next earnings report date. On that day, ENB is projected to report earnings of $0.48 per share, which would represent year-over-year growth of 4.35%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.42 billion, up 0.69% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.91 per share and revenue of $30.75 billion. These totals would mark changes of -4.5% and -18.49%, respectively, from last year.

Any recent changes to analyst estimates for ENB should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.

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 0.09% lower. ENB is currently a Zacks Rank #3 (Hold).

Investors should also note ENB's current valuation metrics, including its Forward P/E ratio of 17.15. For comparison, its industry has an average Forward P/E of 14.86, which means ENB is trading at a premium to the group.

Investors should also note that ENB has a PEG ratio of 2.87 right now. 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 3.97 as of yesterday's close.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 70, putting it in the top 28% 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.

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


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