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

Enbridge (ENB) closed the most recent trading day at $35.59, making no change from the previous trading session. This move lagged the S&P 500's daily gain of 0.22%. Meanwhile, the Dow gained 0.59%, and the Nasdaq, a tech-heavy index, added 0.16%.

Heading into today, shares of the oil and natural gas transportation and power transmission company had gained 15.85% over the past month, outpacing the Oils-Energy sector's gain of 2.53% and the S&P 500's gain of 0.49% in that time.

ENB will be looking to display strength as it nears its next earnings release, which is expected to be February 15, 2019. On that day, ENB is projected to report earnings of $0.45 per share, which would represent a year-over-year decline of 6.25%.

Investors should also note any recent changes to analyst estimates for ENB. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.11% higher. ENB is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, ENB currently has a Forward P/E ratio of 21.14. For comparison, its industry has an average Forward P/E of 16.25, which means ENB is trading at a premium to the group.

Investors should also note that ENB has a PEG ratio of 2.22 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Production and Pipelines was holding an average PEG ratio of 2.69 at yesterday's closing price.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 161, putting it in the bottom 38% 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.

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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