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Enbridge (ENB) Gains But Lags Market: What You Should Know

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Enbridge (ENB - Free Report) closed the most recent trading day at $33.85, moving +0.74% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.61%. Elsewhere, the Dow gained 0.77%, while the tech-heavy Nasdaq added 2.55%.

Coming into today, shares of the oil and natural gas transportation and power transmission company had gained 5.03% in the past month. In that same time, the Oils-Energy sector gained 2.81%, while the S&P 500 lost 0.35%.

ENB will be looking to display strength as it nears its next earnings release, which is expected to be February 12, 2021. In that report, analysts expect ENB to post earnings of $0.47 per share. This would mark year-over-year growth of 2.17%.

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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.49% lower. ENB is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, ENB is currently trading at a Forward P/E ratio of 16.4. This valuation marks a premium compared to its industry's average Forward P/E of 13.93.

Also, we should mention that ENB has a PEG ratio of 2.41. 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. Oil and Gas - Production and Pipelines stocks are, on average, holding a PEG ratio of 2.79 based on yesterday's closing prices.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 35% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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