In the latest trading session, Enbridge (ENB) closed at $40.23, marking a -1.42% move from the previous day. This move lagged the S&P 500's daily gain of 0.28%. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, added 0.16%.
Prior to today's trading, shares of the oil and natural gas transportation and power transmission company had gained 7.39% over the past month. This has lagged the Oils-Energy sector's gain of 9% and outpaced the S&P 500's loss of 5.39% in that time.
Investors will be hoping for strength from Enbridge as it approaches its next earnings release, which is expected to be February 11, 2022. On that day, Enbridge is projected to report earnings of $0.62 per share, which would represent year-over-year growth of 44.19%.
Any recent changes to analyst estimates for Enbridge should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 remained stagnant. Enbridge is currently sporting a Zacks Rank of #4 (Sell).
Digging into valuation, Enbridge currently has a Forward P/E ratio of 16.68. Its industry sports an average Forward P/E of 14.86, so we one might conclude that Enbridge is trading at a premium comparatively.
We can also see that ENB currently has a PEG ratio of 2.78. 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. Oil and Gas - Production and Pipelines stocks are, on average, holding a PEG ratio of 4.95 based on yesterday's closing prices.
The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 194, putting it in the bottom 24% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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