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

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In the latest trading session, Enbridge (ENB - Free Report) closed at $35.81, marking a +1.82% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.74%. Elsewhere, the Dow gained 0.76%, while the tech-heavy Nasdaq added 0.95%.

Coming into today, shares of the oil and natural gas transportation and power transmission company had gained 4.36% in the past month. In that same time, the Oils-Energy sector gained 3.48%, while the S&P 500 gained 4.41%.

ENB will be looking to display strength as it nears its next earnings release, which is expected to be February 12, 2021. The company is expected to report EPS of $0.46, unchanged from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for ENB. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 0.07% higher. ENB is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that ENB has a Forward P/E ratio of 17.17 right now. For comparison, its industry has an average Forward P/E of 14.64, which means ENB is trading at a premium to the group.

Meanwhile, ENB's PEG ratio is currently 2.52. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Oil and Gas - Production and Pipelines stocks are, on average, holding a PEG ratio of 2.93 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 58, which puts it in the top 23% 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.

To follow ENB in the coming trading sessions, be sure to utilize Zacks.com.


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