Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, Enbridge (ENB - Free Report) closed at $34.58, marking a -0.23% move from the previous day. This change lagged the S&P 500's 0.36% gain on the day. At the same time, the Dow lost 0.12%, and the tech-heavy Nasdaq gained 0.69%.

Heading into today, shares of the oil and natural gas transportation and power transmission company had gained 7.67% over the past month, lagging the Oils-Energy sector's gain of 9.81% and outpacing the S&P 500's gain of 4.27% in that time.

Investors will be hoping for strength from ENB as it approaches its next earnings release, which is expected to be February 12, 2021. On that day, ENB is projected to report earnings of $0.47 per share, which would represent year-over-year growth of 2.17%.

It is also important to note the recent changes to analyst estimates for ENB. These revisions help to show the ever-changing nature of near-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. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.49% lower. ENB currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that ENB has a Forward P/E ratio of 16.92 right now. For comparison, its industry has an average Forward P/E of 15.07, which means ENB is trading at a premium to the group.

Also, we should mention that ENB has a PEG ratio of 2.49. 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. Oil and Gas - Production and Pipelines stocks are, on average, holding a PEG ratio of 3.01 based on yesterday's closing prices.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 85, putting it in the top 34% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.


In-Depth Zacks Research for the Tickers Above


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


Enbridge Inc (ENB) - free report >>

Published in