Enbridge (ENB) Outpaces Stock Market Gains: What You Should Know
Enbridge (ENB) closed the most recent trading day at $40.84, moving +0.47% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.25%. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq added 7.26%.
Coming into today, shares of the oil and natural gas transportation and power transmission company had gained 3.51% in the past month. In that same time, the Oils-Energy sector gained 4.55%, while the S&P 500 gained 5.73%.
Wall Street will be looking for positivity from Enbridge as it approaches its next earnings report date. This is expected to be February 10, 2023. On that day, Enbridge is projected to report earnings of $0.56 per share, which would represent year-over-year growth of 3.7%.
Investors might also notice recent changes to analyst estimates for Enbridge. These revisions help to show the ever-changing nature of near-term business trends. 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. Within the past 30 days, our consensus EPS projection has moved 2.1% higher. Enbridge is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Enbridge is currently trading at a Forward P/E ratio of 17.43. For comparison, its industry has an average Forward P/E of 16.48, which means Enbridge is trading at a premium to the group.
Meanwhile, ENB's PEG ratio is currently 2.91. 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. The Oil and Gas - Production and Pipelines industry currently had an average PEG ratio of 4.05 as of yesterday's close.
The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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