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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 $38.68, marking a +0.21% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.2%.

Prior to today's trading, shares of the oil and natural gas transportation and power transmission company had lost 3.11% over the past month. This has was narrower than the Oils-Energy sector's loss of 7.15% and lagged the S&P 500's gain of 3.28% in that time.

ENB will be looking to display strength as it nears its next earnings release, which is expected to be July 30, 2021. In that report, analysts expect ENB to post earnings of $0.46 per share. This would mark year-over-year growth of 12.2%.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.16 per share and revenue of $38.83 billion. These totals would mark changes of +19.34% and +32.75%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for ENB. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. Within the past 30 days, our consensus EPS projection has moved 0.35% lower. ENB currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, ENB is holding a Forward P/E ratio of 17.89. This represents a premium compared to its industry's average Forward P/E of 14.55.

Also, we should mention that ENB has a PEG ratio of 2.98. 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 3.04 as of yesterday's close.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 67, which puts it in the top 27% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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