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Enbridge (ENB) Flat As Market Gains: What You Should Know

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In the latest trading session, Enbridge (ENB - Free Report) closed at $36.87, marking no change from the previous day. This change lagged the S&P 500's daily gain of 0.37%. Elsewhere, the Dow gained 0.42%, while the tech-heavy Nasdaq added 0.56%.

Heading into today, shares of the oil and natural gas transportation and power transmission company had gained 5.97% over the past month, outpacing the Oils-Energy sector's gain of 2.05% and the S&P 500's gain of 4.42% in that time.

Investors will be hoping for strength from ENB as it approaches its next earnings release, which is expected to be November 8, 2019. In that report, analysts expect ENB to post earnings of $0.42 per share. This would mark no growth from the prior-year quarter.

ENB's full-year Zacks Consensus Estimates are calling for earnings of $2.06 per share and revenue of $37.74 billion. These results would represent year-over-year changes of +0.49% and -1.94%, respectively.

Investors should also note any 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.

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. Within the past 30 days, our consensus EPS projection has moved 7.98% higher. ENB is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, ENB currently has a Forward P/E ratio of 17.88. Its industry sports an average Forward P/E of 17.85, so we one might conclude that ENB is trading at a premium comparatively.

It is also worth noting that ENB currently has a PEG ratio of 2.79. 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 was holding an average PEG ratio of 3.56 at yesterday's closing price.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 201, putting it in the bottom 22% 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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