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Enbridge (ENB) Stock Sinks As Market Gains: Here's Why
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Enbridge (ENB - Free Report) closed the most recent trading day at $48.20, moving -1.09% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 1.49%. Meanwhile, the Dow gained 0.71%, and the Nasdaq, a tech-heavy index, added 2.26%.
Prior to today's trading, shares of the oil and natural gas transportation and power transmission company had lost 3.43% lagged the Oils-Energy sector's gain of 0.51% and the S&P 500's gain of 0.1%.
Market participants will be closely following the financial results of Enbridge in its upcoming release. The company is forecasted to report an EPS of $0.38, showcasing a 15.15% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $10.6 billion, showing a 0.3% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $2.12 per share and a revenue of $58.01 billion, demonstrating changes of -1.85% and +24.5%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Enbridge. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.41% higher. Enbridge currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Enbridge is currently trading at a Forward P/E ratio of 23.02. Its industry sports an average Forward P/E of 19.24, so one might conclude that Enbridge is trading at a premium comparatively.
Meanwhile, ENB's PEG ratio is currently 5.75. 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 of the close of trade yesterday, the Oil and Gas - Production and Pipelines industry held an average PEG ratio of 1.84.
The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 107, finds itself in the top 44% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Enbridge (ENB) Stock Sinks As Market Gains: Here's Why
Enbridge (ENB - Free Report) closed the most recent trading day at $48.20, moving -1.09% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 1.49%. Meanwhile, the Dow gained 0.71%, and the Nasdaq, a tech-heavy index, added 2.26%.
Prior to today's trading, shares of the oil and natural gas transportation and power transmission company had lost 3.43% lagged the Oils-Energy sector's gain of 0.51% and the S&P 500's gain of 0.1%.
Market participants will be closely following the financial results of Enbridge in its upcoming release. The company is forecasted to report an EPS of $0.38, showcasing a 15.15% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $10.6 billion, showing a 0.3% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $2.12 per share and a revenue of $58.01 billion, demonstrating changes of -1.85% and +24.5%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Enbridge. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.41% higher. Enbridge currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Enbridge is currently trading at a Forward P/E ratio of 23.02. Its industry sports an average Forward P/E of 19.24, so one might conclude that Enbridge is trading at a premium comparatively.
Meanwhile, ENB's PEG ratio is currently 5.75. 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 of the close of trade yesterday, the Oil and Gas - Production and Pipelines industry held an average PEG ratio of 1.84.
The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 107, finds itself in the top 44% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.