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Enbridge (ENB) Gains But Lags Market: What You Should Know

Enbridge (ENB) closed at $39.23 in the latest trading session, marking a +0.38% move from the prior day.

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This story originally appeared on Zacks

In the latest trading session, Enbridge (ENB) closed at $39.23, marking a +0.38% move from the previous day. This move lagged the S&P 500's daily gain of 0.64%. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, added 0.46%.

- Zacks

Prior to today's trading, shares of the oil and natural gas transportation and power transmission company had gained 4.83% over the past month. This has outpaced the Oils-Energy sector's gain of 3.06% and the S&P 500's gain of 4.56% in that time.

Enbridge will be looking to display strength as it nears its next earnings release. In that report, analysts expect Enbridge to post earnings of $0.46 per share. This would mark year-over-year growth of 6.98%.

Any recent changes to analyst estimates for Enbridge should also be noted by investors. 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.34% higher. Enbridge is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Enbridge's current valuation metrics, including its Forward P/E ratio of 17.52. For comparison, its industry has an average Forward P/E of 14.49, which means Enbridge is trading at a premium to the group.

Meanwhile, ENB's PEG ratio is currently 2.92. 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. ENB's industry had an average PEG ratio of 3.99 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 103, which puts it in the top 41% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

You can find more information on all of these metrics, and much more, on Zacks.com.



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