Back to top

Enbridge (ENB) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

Enbridge (ENB - Free Report) closed at $33.17 in the latest trading session, marking a +0.15% move from the prior day. The stock lagged the S&P 500's daily gain of 2.12%. At the same time, the Dow added 2.13%, and the tech-heavy Nasdaq gained 2.64%.

Heading into today, shares of the oil and natural gas transportation and power transmission company had lost 1.72% over the past month, outpacing the Oils-Energy sector's loss of 8.07% and the S&P 500's loss of 4.4% in that time.

Wall Street will be looking for positivity from ENB as it approaches its next earnings report date. This is expected to be February 15, 2019. On that day, ENB is projected to report earnings of $0.47 per share, which would represent a year-over-year decline of 2.08%.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.08 per share and revenue of $37.67 billion. These totals would mark changes of +35.06% and +4.47%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for ENB. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. The Zacks Consensus EPS estimate has moved 0.99% lower within the past month. ENB currently has a Zacks Rank of #3 (Hold).

In terms of valuation, ENB is currently trading at a Forward P/E ratio of 15.95. This valuation marks a discount compared to its industry's average Forward P/E of 20.1.

Meanwhile, ENB's PEG ratio is currently 1.38. 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. ENB's industry had an average PEG ratio of 3.42 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 41, which puts it in the top 16% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Enbridge Inc (ENB) - free report >>

More from Zacks Tale of the Tape

You May Like

Published in