Enbridge (ENB) closed the most recent trading day at $48.20, moving -1.09% from the previous trading session. The stock’s performance was behind the S&P 500’s daily gain of 1.49%. Meanwhile, the Dow gained 0.71%, and the Nasdaq, a tech-heavy index, added 2.26%.
Prior to today’s trading, shares of the oil and natural gas transportation and power transmission company had lost 3.43% lagged the Oils-Energy sector’s gain of 0.51% and the S&P 500’s gain of 0.1%.
Market participants will be closely following the financial results of Enbridge in its upcoming release. The company is forecasted to report an EPS of $0.38, showcasing a 15.15% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $10.6 billion, showing a 0.3% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $2.12 per share and a revenue of $58.01 billion, demonstrating changes of -1.85% and +24.5%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Enbridge. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.41% higher. Enbridge currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Enbridge is currently trading at a Forward P/E ratio of 23.02. Its industry sports an average Forward P/E of 19.24, so one might conclude that Enbridge is trading at a premium comparatively.
Meanwhile, ENB’s PEG ratio is currently 5.75. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. As of the close of trade yesterday, the Oil and Gas – Production and Pipelines industry held an average PEG ratio of 1.84.
The Oil and Gas – Production and Pipelines industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 107, finds itself in the top 44% echelons of all 250+ industries.
Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
