Enbridge Inc. (ENB): Today's Featured Energy Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Enbridge ( ENB) pushed the Energy industry lower today making it today's featured Energy laggard. The industry as a whole closed the day up 0.6%. By the end of trading, Enbridge fell $0.87 (-1.9%) to $46.04 on average volume. Throughout the day, 1,009,317 shares of Enbridge exchanged hands as compared to its average daily volume of 774,300 shares. The stock ranged in price between $45.80-$46.63 after having opened the day at $46.58 as compared to the previous trading day's close of $46.91. Other companies within the Energy industry that declined today were: Torch Energy Royalty ( TRU), down 42.5%, BMB Munai ( BMBM), down 21.1%, GeoPetro Resources Company ( GPR), down 17.6% and InterOil Corporation ( IOC), down 8.4%.
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Enbridge Inc. operates as an energy transportation and distribution company in the United States and Canada. Its Liquids Pipelines segment operates common carrier and contract crude oil, natural gas liquids (NGL), and refined products pipelines and terminals. Enbridge has a market cap of $38.0 billion and is part of the basic materials sector. The company has a P/E ratio of 63.4, above the S&P 500 P/E ratio of 17.7. Shares are up 8.3% year to date as of the close of trading on Friday. Currently there are 8 analysts that rate Enbridge a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Enbridge as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and increase in net income. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, generally higher debt management risk and disappointing return on equity.

On the positive front, Barnwell Industries ( BRN), down 10.9%, Midstates Petroleum ( MPO), down 10.7%, Andatee China Marine Fuel Services Corporat ( AMCF), down 9.8% and Houston American Energy Corporation ( HUSA), down 9.6% , were all gainers within the energy industry with Occidental Petroleum Corporation ( OXY) being today's featured energy industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the energy industry could consider Energy Select Sector SPDR ( XLE) while those bearish on the energy industry could consider Proshares Short Oil & Gas ( DDG).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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