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Enbridge (ENB) Outpaces Stock Market Gains: What You Should Know
Enbridge (ENB - Free Report) closed at $36.82 in the latest trading session, marking a +0.25% move from the prior day. This change outpaced the S&P 500's 0.17% gain on the day. At the same time, the Dow added 0.6%, and the tech-heavy Nasdaq gained 0.67%.
Coming into today, shares of the oil and natural gas transportation and power transmission company had lost 2.88% in the past month. In that same time, the Oils-Energy sector lost 8.08%, while the S&P 500 gained 0.25%.
Enbridge will be looking to display strength as it nears its next earnings release. In that report, analysts expect Enbridge to post earnings of $0.63 per share. This would mark a year-over-year decline of 4.55%.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.27 per share and revenue of $37.8 billion. These totals would mark changes of +5.09% and -7.87%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Enbridge. 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.
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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.05% lower. Enbridge is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Enbridge currently has a Forward P/E ratio of 16.17. Its industry sports an average Forward P/E of 13.73, so we one might conclude that Enbridge is trading at a premium comparatively.
Also, we should mention that ENB has a PEG ratio of 2.69. 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. ENB's industry had an average PEG ratio of 3.83 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 33, which puts it in the top 14% 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.