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Enbridge (ENB) Dips More Than Broader Markets: What You Should Know

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Enbridge (ENB - Free Report) closed at $39.65 in the latest trading session, marking a -1.02% move from the prior day. This move lagged the S&P 500's daily loss of 0.91%.

Prior to today's trading, shares of the oil and natural gas transportation and power transmission company had gained 7.37% over the past month. This has outpaced the Oils-Energy sector's gain of 3.93% and the S&P 500's gain of 0.01% in that time.

Wall Street will be looking for positivity from ENB as it approaches its next earnings report date. The company is expected to report EPS of $0.46, up 27.78% from the prior-year quarter.

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.

Any recent changes to analyst estimates for ENB should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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 1.48% higher. ENB is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, ENB currently has a Forward P/E ratio of 17.98. This represents a premium compared to its industry's average Forward P/E of 17.09.

Investors should also note that ENB has a PEG ratio of 3 right now. 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 industry currently had an average PEG ratio of 3.41 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 187, which puts it in the bottom 27% 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.

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


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