Enbridge (ENB) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Enbridge boasts a massive, irreplaceable pipeline network, creating a near-monopoly and a significant moat in North American energy infrastructure. Despite a premium valuation, Enbridge's stable, inflation-protected cash flows and strategic utility acquisitions justify a bullish outlook. Growth catalysts include LNG demand, data center expansion, and $23B in upcoming projects, supporting long-term earnings and dividend stability.
Enbridge (ENB) closed the most recent trading day at $44.59, moving 1.11% from the previous trading session.
Wondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Style Scores.
Enbridge (ENB) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
I am upgrading Enbridge to Buy, driven by new Canadian pipeline projects and favorable political changes supporting infrastructure expansion. Global diversification of oil sales, especially to Asia and Europe, is set to boost Enbridge's profitability beyond current long-term growth targets. Lower interest rates in Canada and the US, prompted by trade tensions and tariffs, should enhance Enbridge's share valuation and investor appeal.
The combination of high volatilities and a few fundamental economic forces could lead to much higher oil prices in the near future. The OPEC+'s production decision, Iran situation, and also ongoing tariff disputes could keep oil price volatility elevated. The refilling of the SPR (strategic petroleum reserve) and persisting inflation both act as upward pressure on oil prices.
In the latest trading session, Enbridge (ENB) closed at $45.21, marking a +1.48% move from the previous day.
Enbridge remains a 'buy,' due to solid growth prospects, robust demand for energy, and a strong management growth plan, despite recent underperformance, versus the S&P 500. Recent financials show strong revenue and EBITDA growth, especially from Gas Distribution and Storage, boosted by acquisitions and rate increases. Management forecasts continued EBITDA and cash flow growth through 2026, supported by $28 billion in secured capital projects and substantial investment capacity.
Enbridge's robust DCF easily covers both common and preferred dividends, with preferred payouts requiring just 3% of pre-dividend DCF. The Series 11 preferred shares offer a 6.6% yield, fixed until 2030, providing an attractive risk/reward profile versus Canadian government bonds. A hybrid approach—owning both common and preferred shares—balances upside participation with stable, high-yield income.
I rate Enbridge a Buy for its multi-decade dividend growth, stable cash flow, and strategic acquisitions fueling long-term growth. The company's low-risk, fee-based contracts and strong segment performance support reliable income and future dividend increases. Despite trading at a premium and carrying significant debt, Enbridge's financial health and investor confidence justify its valuation.
In the latest trading session, Enbridge (ENB) closed at $44.15, marking a -1.32% move from the previous day.