Enbridge (ENB) Outpaces Stock Market Gains: What You Should Know

Enbridge (ENB) ended the recent trading session at $35.32, demonstrating a +0.23% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.15%. On the other hand, the Dow registered a loss of 0.02%, and the technology-centric Nasdaq increased by 0.32%.

Shares of the oil and natural gas transportation and power transmission company have depreciated by 2.17% over the course of the past month, underperforming the Oils-Energy sector's gain of 8.57% and the S&P 500's gain of 1.65%.

Market participants will be closely following the financial results of Enbridge in its upcoming release. The company plans to announce its earnings on May 10, 2024. The company's earnings per share (EPS) are projected to be $0.59, reflecting a 6.35% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $9.94 billion, indicating a 11.32% growth compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.13 per share and revenue of $34.64 billion, indicating changes of +2.9% and +6.89%, respectively, compared to the previous year.

Any recent changes to analyst estimates for Enbridge should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.89% higher. At present, Enbridge boasts a Zacks Rank of #3 (Hold).

In terms of valuation, Enbridge is currently trading at a Forward P/E ratio of 16.55. This expresses no noticeable deviation compared to the average Forward P/E of 16.55 of its industry.

We can also see that ENB currently has a PEG ratio of 3.31. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Oil and Gas - Production and Pipelines industry had an average PEG ratio of 5.22 as trading concluded yesterday.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 165, this industry ranks in the bottom 35% of all industries, numbering over 250.

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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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