Enbridge Inc. (ENB) Is Getting Its Mojo Back

Will Enbridge Inc. (NYSE:ENB) rip to new highs anytime soon? Who knows, but much of it depends on what analysts believe and what action the company’s insiders pursue. The stock closed higher on 14 March. The shares accumulated 0.08 points or 0.22 percent at $37.05 with a light trade volume of 2.195 million shares. After opening the session at $36.87, the shares went as high as $37.14 and as low as $36.82, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $75.8 billion and now has 2.05 billion shares outstanding. Enbridge Inc. (ENB) stock has gained 3.87 percent of market value in 21 trading days.

ENB stock has a trailing 3-year beta of 0.69, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $1.07 a share in the trailing twelve months. The stock’s value has surged 19.21 percent year to date (YTD) against a rise of 12.65 percent in 12 month’s time. The company’s shares still trade -1.7 percent away from its 1-year high of $37.69 and 28.55 percent up from 52-week low of $28.82. The average consensus rating on the company is 2.3, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Enbridge Inc. (ENB) will probably climb 12.44 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $48.73-month high price target. This represents a whopping 31.52 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $40.93, which represents a return potential of 10.47 percent when compared to the closing price of the stock of $37.05 on Thursday, March 14. The lowest price target for the stock is $35.72 — slightly more than -3.59 percent from ENB’s current share price.

History has shown that shares in Enbridge Inc. have gone down on 9 different earnings reaction days and are predicted to add 0.01 percent when the company reports upcoming earnings. Investors will get their next glimpse of ENB’s Q1 earnings on May 11. Analysts are forecasting revenue to climb 14 percent to $8.68B in the fiscal first quarter, while earnings are seen soaring by nearly -4.35 percent to $0.44 per share. It earned $0.31 per share, worse than the $0.37, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $11.6B, worse than the $12.3B analysts expected. Earnings are estimated to increase by 360.6 percent this year, 11.21 percent next year and continue to increase by 10.02 percent annually for the next 5 years.

The stock is currently hovering around the first support level of $36.87. Below this, the next support is placed in the zone of $36.68. Till the time, the ENB stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 57.16 on daily chart, which may remain a cause for concern. If the price breaks below $36.68 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $37.19 mark may result into a pull-back move towards $37.32 level.

Shares of Enbridge Inc. (ENB) are trading at a P/E ratio of 34.12 times earnings reported for the past 12 months. The industry ENB operates in has an average P/E of 592.73. Its P/E ratio went as low as 29.13X and as high as 155.69 over the 5-year span.Further, it is sporting a 2.2 on the Price-to-Sales ratio. Compare this with the industry average P/S of 2.48. 36.6 percent is the gross profit margin for Enbridge Inc. and operating margin sits at 10.4 percent. Along with this, the net profit margin is 5.4 percent.