Enbridge (ENB) closed at $39.77 in the latest trading session, marking a +1.9% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.75%. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq gained 10.36%.
Heading into today, shares of the oil and natural gas transportation and power transmission company had lost 0.91% over the past month, outpacing the Oils-Energy sector's loss of 6.78% and the S&P 500's loss of 5.98% in that time.
Wall Street will be looking for positivity from Enbridge as it approaches its next earnings report date. In that report, analysts expect Enbridge to post earnings of $0.55 per share. This would mark year-over-year growth of 1.85%.
Investors might also notice recent changes to analyst estimates for Enbridge. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.78% lower. Enbridge is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Enbridge currently has a Forward P/E ratio of 17.09. This represents a premium compared to its industry's average Forward P/E of 15.14.
Also, we should mention that ENB has a PEG ratio of 2.85. 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. Oil and Gas - Production and Pipelines stocks are, on average, holding a PEG ratio of 4.18 based on yesterday's closing prices.
The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 18, which puts it in the top 8% 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.
To follow ENB in the coming trading sessions, be sure to utilize Zacks.com.
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