Today's Strong And Under The Radar Stock: Enbridge (ENB)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Enbridge ( ENB) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Enbridge as such a stock due to the following factors:

  • ENB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $43.5 million.
  • ENB is making at least a new 3-day high.
  • ENB has a PE ratio of 35.8.
  • ENB is mentioned 1.68 times per day on StockTwits.
  • ENB has not yet been mentioned on StockTwits today.
  • ENB is currently in the upper 20% of its 1-year range.
  • ENB is in the upper 35% of its 20-day range.
  • ENB is in the upper 45% of its 5-day range.
  • ENB is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on ENB:

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. The stock currently has a dividend yield of 2.5%. ENB has a PE ratio of 35.8. Currently there are 4 analysts that rate Enbridge a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Enbridge has been 805,200 shares per day over the past 30 days. Enbridge has a market cap of $43.0 billion and is part of the basic materials sector and energy industry. Shares are up 15.6% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Enbridge as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, solid stock price performance, impressive record of earnings per share growth and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 3.5%. Since the same quarter one year prior, revenues rose by 29.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 858.8% when compared to the same quarter one year prior, rising from $85.00 million to $815.00 million.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
  • ENBRIDGE INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, ENBRIDGE INC reported lower earnings of $0.55 versus $0.87 in the prior year.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, ENBRIDGE INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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