Enbridge (ENB - Free Report) closed the most recent trading day at $34.50, moving +0.88% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.48%. Elsewhere, the Dow gained 0.53%, while the tech-heavy Nasdaq added 0.8%.
Coming into today, shares of the oil and natural gas transportation and power transmission company had gained 8.61% in the past month. In that same time, the Oils-Energy sector lost 1.26%, while the S&P 500 lost 2.09%.
Investors will be hoping for strength from ENB as it approaches its next earnings release, which is expected to be February 15, 2019. The company is expected to report EPS of $0.45, down 6.25% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for ENB. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 6.55% lower within the past month. ENB currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, ENB is holding a Forward P/E ratio of 20.64. For comparison, its industry has an average Forward P/E of 15.61, which means ENB is trading at a premium to the group.
It is also worth noting that ENB currently has a PEG ratio of 2.02. 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 industry currently had an average PEG ratio of 2.61 as of yesterday's close.
The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 107, putting it in the top 42% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.