Enbridge (ENB) Gains But Lags Market: What You Should Know
Enbridge (ENB) closed the most recent trading day at $28.36, moving +0.71% from the previous trading session. The stock lagged the S&P 500's daily gain of 3.41%. At the same time, the Dow added 3.44%, and the tech-heavy Nasdaq gained 2.58%.
Prior to today's trading, shares of the oil and natural gas transportation and power transmission company had lost 12.9% over the past month. This has was narrower than the Oils-Energy sector's loss of 21.11% and lagged the S&P 500's loss of 10.46% in that time.
Investors will be hoping for strength from ENB as it approaches its next earnings release. The company is expected to report EPS of $0.51, down 16.39% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.77 per share and revenue of $32.01 billion, which would represent changes of -11.5% and -15.16%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for ENB. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 11.18% lower. ENB is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that ENB has a Forward P/E ratio of 15.9 right now. This represents a premium compared to its industry's average Forward P/E of 10.81.
Meanwhile, ENB's PEG ratio is currently 1.55. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. ENB's industry had an average PEG ratio of 3.05 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 150, which puts it in the bottom 42% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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