Enbridge (ENB) closed the most recent trading day at $27.56, moving +0.04% from the previous trading session. This move lagged the S&P 500's daily gain of 1.2%. Meanwhile, the Dow gained 0.53%, and the Nasdaq, a tech-heavy index, added 1.64%.
Heading into today, shares of the oil and natural gas transportation and power transmission company had lost 5.65% over the past month, outpacing the Oils-Energy sector's loss of 7.76% and lagging the S&P 500's loss of 2.23% in that time.
Wall Street will be looking for positivity from ENB as it approaches its next earnings report date. This is expected to be November 6, 2020. On that day, ENB is projected to report earnings of $0.40 per share, which would represent a year-over-year decline of 4.76%.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.94 per share and revenue of $28.58 billion, which would represent changes of -3% and -24.24%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for ENB. Recent revisions tend to reflect the latest near-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 2.76% lower. ENB is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, ENB currently has a Forward P/E ratio of 14.2. This valuation marks a premium compared to its industry's average Forward P/E of 11.84.
It is also worth noting that ENB currently has a PEG ratio of 1.85. 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. ENB's industry had an average PEG ratio of 3.63 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 100, which puts it in the top 40% 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.
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