In the latest trading session, Enbridge (ENB - Free Report) closed at $28.21, marking a +1.69% move from the previous day. This move lagged the S&P 500's daily gain of 3.35%. At the same time, the Dow added 3.19%, and the tech-heavy Nasdaq gained 3.62%.
Coming into today, shares of the oil and natural gas transportation and power transmission company had lost 26.34% in the past month. In that same time, the Oils-Energy sector lost 34.36%, while the S&P 500 lost 14.37%.
Investors will be hoping for strength from ENB as it approaches its next earnings release. In that report, analysts expect ENB to post earnings of $0.51 per share. This would mark a year-over-year decline of 16.39%.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.78 per share and revenue of $33.57 billion, which would represent changes of -11% and -11.01%, respectively, from the prior year.
It is also important to note the 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 8.95% lower. ENB is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, ENB is currently trading at a Forward P/E ratio of 15.61. This represents a premium compared to its industry's average Forward P/E of 8.
Investors should also note that ENB has a PEG ratio of 1.53 right now. 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 2.09 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 97, which puts it in the top 39% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.