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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 $39.75, marking a -0.05% move from the previous day. This change lagged the S&P 500's daily gain of 0.47%.

Prior to today's trading, shares of the oil and natural gas transportation and power transmission company had lost 0.15% over the past month. This has lagged the Oils-Energy sector's gain of 3.36% and the S&P 500's loss of 0.12% in that time.

Investors will be hoping for strength from ENB as it approaches its next earnings release. In that report, analysts expect ENB to post earnings of $0.49 per share. This would mark year-over-year growth of 19.51%.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.18 per share and revenue of $39.81 billion, which would represent changes of +20.44% and +36.08%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for ENB. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.53% higher. ENB is holding a Zacks Rank of #2 (Buy) right now.

Investors should also note ENB's current valuation metrics, including its Forward P/E ratio of 18.22. For comparison, its industry has an average Forward P/E of 16, which means ENB is trading at a premium to the group.

Meanwhile, ENB's PEG ratio is currently 3.04. 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. The Oil and Gas - Production and Pipelines was holding an average PEG ratio of 3.2 at yesterday's closing price.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 130, which puts it in the bottom 49% 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.


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