Enbridge Inc. (ENB - Free Report) has witnessed upward estimate revision for its 2020 bottom line in the past 30 days. In fact, three out of six analysts have revised their estimates upward. Also, this leading midstream energy player’s stock price has risen 8.2% quarter to date.
The company, carrying Zacks Rank #2 (Buy), is a leading midstream energy infrastructure provider in North America. Enbridge generates stable fee-based revenues since it has a giant network of pipeline assets, transporting roughly 25% of crude volumes being produced in North America. The pipeline networks also carry roughly 20% of natural gas that are consumed in America. Moreover, through its gas distribution and storage properties, the company is capable of serving as many as 3.8 million retail customers in Ontario and Quebec.
Overall, the company’s midstream business model is stable with low exposure to volatility in oil and natural gas prices. Enbridge also has a presence in growing renewable power business since there has been a growing global need for clean energy. Notably, the company is responsible of generating 1,750 MW of net renewable power in North America and Europe.
Importantly, Enbridge’s stable business model allows it to raise dividend at a compound annual growth rate of 11% through 2020 since 1995. In fact, the dividend growth story is likely to continue on the back of the midstream company’s commercially-secured capital growth project of C$11-billion.
Other Stocks to Consider
Other prospective stocks in the energy sector are Murphy USA Inc (MUSA - Free Report) , Key Energy Services, Inc. (KEGX - Free Report) and CNX Resources Corporation (CNX - Free Report) . While Murphy and Key Energy sport a Zacks Rank #1 (Strong Buy), CNX Resources carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Murphy USA is likely to see earnings growth of 7% in the next five years.
Key Energy is expected to witness bottom-line growth of 97.2% in 2020.
CNX Resources has witnessed upward estimate revisions for 2020 bottom line in the past 60 days.
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