Enbridge (ENB – Free Report) closed at $42.43 in the latest trading session, marking a +0.74% move from the prior day. The stock’s change was more than the S&P 500’s daily loss of 0.43%. At the same time, the Dow lost 0.07%, and the tech-heavy Nasdaq lost 0.9%.
The the stock of oil and natural gas transportation and power transmission company has fallen by 2.86% in the past month, leading the Oils-Energy sector’s loss of 8.37% and undershooting the S&P 500’s loss of 1.98%.
Market participants will be closely following the financial results of Enbridge in its upcoming release. The company is expected to report EPS of $0.52, up 10.64% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $4.78 billion, indicating a 42.87% decrease compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $2.03 per share and a revenue of $31.84 billion, demonstrating changes of -1.93% and -1.73%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Enbridge. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.49% lower. Enbridge currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Enbridge is currently being traded at a Forward P/E ratio of 20.8. This represents a premium compared to its industry’s average Forward P/E of 15.95.
Also, we should mention that ENB has a PEG ratio of 4.16. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. Oil and Gas – Production and Pipelines stocks are, on average, holding a PEG ratio of 3.4 based on yesterday’s closing prices.
The Oil and Gas – Production and Pipelines industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 223, this industry ranks in the bottom 12% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don’t forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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