Enbridge (ENB) Outpaces Stock Market Gains: What You Should Know

Enbridge (ENB) closed the most recent trading day at $29.66, moving +1.54% from the previous trading session. The stock outpaced the S&P 500's daily gain of 1.47%. Meanwhile, the Dow gained 1.51%, and the Nasdaq, a tech-heavy index, added 1.11%.

Coming into today, shares of the oil and natural gas transportation and power transmission company had lost 1.78% in the past month. In that same time, the Oils-Energy sector gained 17.95%, while the S&P 500 gained 16.09%.

Wall Street will be looking for positivity from ENB as it approaches its next earnings report date. This is expected to be May 7, 2020. On that day, ENB is projected to report earnings of $0.52 per share, which would represent a year-over-year decline of 14.75%. Meanwhile, our latest consensus estimate is calling for revenue of $8.52 billion, down 11.92% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.72 per share and revenue of $32.04 billion. These totals would mark changes of -14% and -15.09%, 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 3.38% lower. ENB is currently a Zacks Rank #3 (Hold).

Looking at its valuation, ENB is holding a Forward P/E ratio of 17.01. This represents a premium compared to its industry's average Forward P/E of 12.32.

We can also see that ENB currently 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. ENB's industry had an average PEG ratio of 3.26 as of yesterday's close.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 162, which puts it in the bottom 37% 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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