Enbridge (ENB) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Enbridge (ENB) closed at $40.08, marking a +1.42% move from the previous day. This change outpaced the S&P 500's 1.21% gain on the day.
Heading into today, shares of the oil and natural gas transportation and power transmission company had gained 1% over the past month, lagging the Oils-Energy sector's gain of 7.93% and outpacing the S&P 500's loss of 0.9% 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 $0.46, up 27.78% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.23 per share and revenue of $36.58 billion, which would represent changes of +23.2% and +25.05%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for ENB. These recent revisions tend to reflect the evolving nature of short-term business trends. 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.
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 1.37% 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 17.74. For comparison, its industry has an average Forward P/E of 17.07, which means ENB is trading at a premium to the group.
Also, we should mention that ENB has a PEG ratio of 2.96. 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. ENB's industry had an average PEG ratio of 3.36 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 115, which puts it in the top 46% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow ENB in the coming trading sessions, be sure to utilize Zacks.com.
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