In the latest trading session, Enbridge (ENB) closed at $45.96, marking a -1.52% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.94%. On the other hand, the Dow registered a gain of 0.75%, and the technology-centric Nasdaq increased by 1.52%.
Shares of the oil and natural gas transportation and power transmission company have appreciated by 4.06% over the course of the past month, underperforming the Oils-Energy sector's gain of 4.54%, and outperforming the S&P 500's gain of 1.67%.
The upcoming earnings release of Enbridge will be of great interest to investors. The company is predicted to post an EPS of $0.42, indicating constancy compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $8.97 billion, indicating a 8.3% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.12 per share and revenue of $37.6 billion. These totals would mark changes of +6% and -3.54%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Enbridge. 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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. Over the past month, there's been a 0.18% fall in the Zacks Consensus EPS estimate. Enbridge is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Enbridge is currently exchanging hands at a Forward P/E ratio of 21.98. This represents a premium compared to its industry average Forward P/E of 17.48.
We can also see that ENB currently has a PEG ratio of 4.39. 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 average PEG ratio for the Oil and Gas - Production and Pipelines industry stood at 2.62 at the close of the market yesterday.
The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 40% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Enbridge Inc (ENB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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