Enbridge (ENB) closed the most recent trading day at $30.66, moving -0.26% from the previous trading session. This change lagged the S&P 500's daily gain of 0.29%. At the same time, the Dow lost 0.24%, and the tech-heavy Nasdaq gained 0.28%.
Heading into today, shares of the oil and natural gas transportation and power transmission company had lost 3.33% over the past month, outpacing the Oils-Energy sector's loss of 4.31% and lagging the S&P 500's gain of 2.96% in that time.
Wall Street will be looking for positivity from ENB as it approaches its next earnings report date. This is expected to be July 29, 2020. The company is expected to report EPS of $0.40, down 20% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.32 billion, down 16.09% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.93 per share and revenue of $32.63 billion. These totals would mark changes of -3.5% and -13.51%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for ENB. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.24% higher. ENB is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that ENB has a Forward P/E ratio of 15.94 right now. Its industry sports an average Forward P/E of 16.89, so we one might conclude that ENB is trading at a discount comparatively.
Also, we should mention that ENB has a PEG ratio of 1.65. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Production and Pipelines industry currently had an average PEG ratio of 3.69 as of yesterday's close.
The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 75, putting it in the top 30% 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.
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