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

Enbridge (ENB) closed at $40.80 in the latest trading session, marking a -1.09% move from the prior day. This change lagged the S&P 500's daily gain of 0.95%. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq gained 0.12%.

Prior to today's trading, shares of the oil and natural gas transportation and power transmission company had lost 8.54% over the past month. This has lagged the Oils-Energy sector's loss of 7.59% and the S&P 500's loss of 3.49% in that time.

Enbridge will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.57, up 3.64% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.38 per share and revenue of $40.49 billion, which would represent changes of +8.68% and +8.66%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Enbridge. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.08% lower. Enbridge is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Enbridge currently has a Forward P/E ratio of 17.35. This represents a premium compared to its industry's average Forward P/E of 14.

Also, we should mention that ENB has a PEG ratio of 2.89. 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. The Oil and Gas - Production and Pipelines industry currently had an average PEG ratio of 3.84 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 71, putting it in the top 29% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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