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

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In the latest trading session, Enbridge (ENB - Free Report) closed at $40.69, marking a +0.74% move from the previous day. This move lagged the S&P 500's daily gain of 0.75%.

Heading into today, shares of the oil and natural gas transportation and power transmission company had gained 4.17% over the past month, outpacing the Oils-Energy sector's gain of 0.89% and the S&P 500's gain of 3.52% in that time.

Investors will be hoping for strength from ENB as it approaches its next earnings release. The company is expected to report EPS of $0.47, up 14.63% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.17 per share and revenue of $38.83 billion, which would represent changes of +19.89% and +32.75%, respectively, from the prior year.

Investors should also note any 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.8% lower. ENB is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, ENB currently has a Forward P/E ratio of 18.79. This valuation marks a premium compared to its industry's average Forward P/E of 15.44.

Meanwhile, ENB's PEG ratio is currently 3.13. 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. The Oil and Gas - Production and Pipelines industry currently had an average PEG ratio of 3.13 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 178, putting it in the bottom 30% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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