Enbridge (ENB) closed the most recent trading day at $26.81, moving -1.83% from the previous trading session. This move lagged the S&P 500’s daily gain of 6%. Elsewhere, the Dow gained 5.2%, while the tech-heavy Nasdaq added 6.23%.
Coming into today, shares of the oil and natural gas transportation and power transmission company had lost 35.28% in the past month. In that same time, the Oils-Energy sector lost 47.86%, while the S&P 500 lost 29.18%.
ENB will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.56, down 8.2% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.99 per share and revenue of $37.94 billion. These totals would mark changes of -0.5% and +0.55%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for ENB. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 0.14% higher within the past month. ENB is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, ENB is currently trading at a Forward P/E ratio of 13.69. For comparison, its industry has an average Forward P/E of 7.92, which means ENB is trading at a premium to the group.
Investors should also note that ENB has a PEG ratio of 1.36 right now. 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. Oil and Gas – Production and Pipelines stocks are, on average, holding a PEG ratio of 1.8 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 102, which puts it in the top 40% 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.
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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