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Enbridge (ENB) Outpaces Stock Market Gains: What You Should Know

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Enbridge (ENB - Free Report) closed at $37.20 in the latest trading session, marking a +0.22% move from the prior day. This change outpaced the S&P 500's 0.16% gain on the day. Meanwhile, the Dow gained 0.42%, and the Nasdaq, a tech-heavy index, added 0.03%.

Prior to today's trading, shares of the oil and natural gas transportation and power transmission company had gained 0.24% over the past month. This has lagged the Oils-Energy sector's gain of 0.29% and the S&P 500's gain of 2.89% in that time.

Investors will be hoping for strength from ENB as it approaches its next earnings release, which is expected to be May 10, 2019. In that report, analysts expect ENB to post earnings of $0.47 per share. This would mark a year-over-year decline of 42.68%.

ENB's full-year Zacks Consensus Estimates are calling for earnings of $1.71 per share and revenue of $35.96 billion. These results would represent year-over-year changes of -16.59% and -6.57%, respectively.

It is also important to note the recent changes to analyst estimates for ENB. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 1.35% 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 21.75. This valuation marks a premium compared to its industry's average Forward P/E of 16.71.

Also, we should mention that ENB has a PEG ratio of 2.42. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Production and Pipelines industry currently had an average PEG ratio of 2.55 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 154, which puts it in the bottom 40% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.




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