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

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Enbridge (ENB - Free Report) closed the most recent trading day at $36.78, moving -1.47% from the previous trading session. This change lagged the S&P 500's 0.1% loss on the day. At the same time, the Dow added 0.33%, and the tech-heavy Nasdaq lost 5.8%.

Coming into today, shares of the oil and natural gas transportation and power transmission company had gained 0.21% in the past month. In that same time, the Oils-Energy sector gained 2.92%, while the S&P 500 gained 3.39%.

Investors will be hoping for strength from Enbridge as it approaches its next earnings release, which is expected to be August 4, 2023. In that report, analysts expect Enbridge to post earnings of $0.52 per share. This would mark a year-over-year decline of 1.89%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.41 billion, down 28.46% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.20 per share and revenue of $33.85 billion, which would represent changes of +1.85% and -17.5%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Enbridge. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Enbridge currently has a Zacks Rank of #3 (Hold).

Investors should also note Enbridge's current valuation metrics, including its Forward P/E ratio of 16.97. This represents a premium compared to its industry's average Forward P/E of 16.41.

Also, we should mention that ENB has a PEG ratio of 2.83. 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 was holding an average PEG ratio of 4.99 at yesterday's closing price.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 85, putting it in the top 34% 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.

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


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