What Investors Need to Know

Enbridge (ENB) ended the recent trading session at $41.80, demonstrating a +1.04% swing from the preceding day’s closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.73%. Elsewhere, the Dow gained 0.16%, while the tech-heavy Nasdaq added 0.98%.

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Prior to today’s trading, shares of the oil and natural gas transportation and power transmission company had lost 4.37% over the past month. This has was narrower than the Oils-Energy sector’s loss of 9.2% and lagged the S&P 500’s gain of 0.34% in that time.

The investment community will be closely monitoring the performance of Enbridge in its forthcoming earnings report. The company’s upcoming EPS is projected at $0.52, signifying a 10.64% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $4.78 billion, down 42.87% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.03 per share and a revenue of $31.84 billion, representing changes of -1.93% and -1.73%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Enbridge. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the company’s business health and profitability.

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Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 1.58% lower. Enbridge is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Enbridge has a Forward P/E ratio of 20.43 right now. This represents a premium compared to its industry’s average Forward P/E of 15.89.

We can additionally observe that ENB currently boasts a PEG ratio of 4.09. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. The average PEG ratio for the Oil and Gas – Production and Pipelines industry stood at 3.35 at the close of the market yesterday.

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