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

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Enbridge (ENB - Free Report) closed at $34.36 in the latest trading session, marking a +0.64% move from the prior day. The stock lagged the S&P 500's daily gain of 0.8%. Elsewhere, the Dow gained 0.47%, while the tech-heavy Nasdaq added 1.12%.

Heading into today, shares of the oil and natural gas transportation and power transmission company had gained 1.43% over the past month, outpacing the Oils-Energy sector's gain of 0.62% and the S&P 500's loss of 1.07% in that time.

Wall Street will be looking for positivity from ENB as it approaches its next earnings report date. In that report, analysts expect ENB to post earnings of $0.40 per share. This would mark a year-over-year decline of 4.76%.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2 per share and revenue of $37.74 billion, which would represent changes of -2.44% and -1.94%, respectively, from the prior 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 5.55% higher within the past month. ENB is currently a Zacks Rank #3 (Hold).

Digging into valuation, ENB currently has a Forward P/E ratio of 17.04. This valuation marks a premium compared to its industry's average Forward P/E of 16.81.

It is also worth noting that ENB currently has a PEG ratio of 2.66. 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. Oil and Gas - Production and Pipelines stocks are, on average, holding a PEG ratio of 3.63 based on yesterday's closing prices.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 155, 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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