In the latest trading session, Enbridge (ENB) closed at $46.58, marking a -3.2% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.64%. On the other hand, the Dow registered a gain of 1.23%, and the technology-centric Nasdaq increased by 0.69%.
The stock of oil and natural gas transportation and power transmission company has risen by 0.06% in the past month, lagging the Oils-Energy sector's gain of 1.8% and the S&P 500's gain of 0.55%.
The upcoming earnings release of Enbridge will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.57, reflecting a 7.55% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $11.71 billion, indicating a 1.02% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.09 per share and a revenue of $43.77 billion, indicating changes of +4.5% and 0%, respectively, from the former year.
Any recent changes to analyst estimates for Enbridge should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 1.64% lower within the past month. Right now, Enbridge possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Enbridge is currently trading at a Forward P/E ratio of 21.82. This denotes a premium relative to the industry average Forward P/E of 15.65.
The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 42, placing it within the top 18% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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Enbridge Inc (ENB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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