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Enbridge (ENB) Suffers a Larger Drop Than the General Market: Key Insights

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Enbridge (ENB - Free Report) closed at $33.75 in the latest trading session, marking a -1.26% move from the prior day. This move lagged the S&P 500's daily loss of 1.2%. At the same time, the Dow lost 0.65%, and the tech-heavy Nasdaq lost 1.79%.

Prior to today's trading, shares of the oil and natural gas transportation and power transmission company had lost 3.77% over the past month. This has lagged the Oils-Energy sector's gain of 6.6% and the S&P 500's loss of 0.85% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Enbridge in its upcoming earnings disclosure. The company's earnings report is set to go public on May 10, 2024. The company is forecasted to report an EPS of $0.59, showcasing a 6.35% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $9.94 billion, indicating a 11.32% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.13 per share and a revenue of $34.64 billion, signifying shifts of +2.9% and +6.89%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for Enbridge. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.89% increase. As of now, Enbridge holds a Zacks Rank of #3 (Hold).

In the context of valuation, Enbridge is at present trading with a Forward P/E ratio of 16.06. Its industry sports an average Forward P/E of 16.44, so one might conclude that Enbridge is trading at a discount comparatively.

One should further note that ENB currently holds a PEG ratio of 3.21. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Oil and Gas - Production and Pipelines industry was having an average PEG ratio of 5.08.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 55, this industry ranks in the top 22% of all industries, numbering over 250.

The Zacks Industry Rank is ordered 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.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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