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

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Enbridge (ENB - Free Report) closed the most recent trading day at $40.14, moving +0.85% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.23%.

Coming into today, shares of the oil and natural gas transportation and power transmission company had gained 1.56% in the past month. In that same time, the Oils-Energy sector lost 1.34%, while the S&P 500 gained 0.65%.

ENB will be looking to display strength as it nears its next earnings release. In that report, analysts expect ENB to post earnings of $0.46 per share. This would mark year-over-year growth of 27.78%.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.23 per share and revenue of $36.58 billion. These totals would mark changes of +23.2% and +25.05%, respectively, from last 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 4.45% higher within the past month. ENB is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that ENB has a Forward P/E ratio of 17.87 right now. This represents a premium compared to its industry's average Forward P/E of 16.71.

We can also see that ENB currently has a PEG ratio of 2.98. 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 3.28 based on yesterday's closing prices.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 115, putting it in the top 46% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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