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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 $38.81, marking a +0.34% move from the previous day. The stock lagged the S&P 500's daily gain of 1.02%.

Prior to today's trading, shares of the oil and natural gas transportation and power transmission company had lost 3.49% over the past month. This has was narrower than the Oils-Energy sector's loss of 8.32% and lagged the S&P 500's gain of 3.01% 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. On that day, ENB is projected to report earnings of $0.46 per share, which would represent year-over-year growth of 12.2%.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.16 per share and revenue of $38.83 billion, which would represent changes of +19.34% and +32.75%, respectively, from the prior year.

It is also important to note the 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.

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.

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 0.35% lower. ENB is currently a Zacks Rank #3 (Hold).

Looking at its valuation, ENB is holding a Forward P/E ratio of 17.93. This represents a premium compared to its industry's average Forward P/E of 14.32.

It is also worth noting that ENB currently has a PEG ratio of 2.99. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Production and Pipelines industry currently had an average PEG ratio of 3.01 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 68, which puts it in the top 27% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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