The leading North American energy transportation company Enbridge Inc. (NYSE: ENB) operates a network of crude oil, liquids, and natural gas pipelines, as well as power generation facilities. The company’s stock has been a popular choice among investors for many years due to its consistent performance and attractive dividend yields.
Yet despite the turnaround in fortunes of a number of well-known stocks in 2023, ENB stock is trading in the red at $38.08, -$0.95 (-2.43%) year-to-date, at the time of publication.
In the last month, ENB has been changing hands in the $38.02 – $41.85 range, which is quite wide. It is also currently trading near the lows of this range, with prices falling strongly lately, so it is better to avoid new long positions here. Enbridge does not present a quality setup at the moment, with prices extended to the downside lately; thus, for a solid entry, it is better to wait for consolidation.
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However, support is found at $36.92 from a horizontal line in the weekly time frame. A resistance zone ranging from $39.65 to $40.19 is formed by a combination of multiple trend lines and important moving averages in various time frames.
View on Wall Street
Based on 22 market analysts of the ratings of Enbridge, the stock has been given a consensus ‘buy’ rating. Notably, eight experts advocate a ‘strong buy,’ and one a ‘buy.’ Elsewhere, twelve recommend ‘hold,’ and one has opted for a ‘strong sell.’
Wall Street ENB end-of-year price prediction: Source: TradingView
Considering the 18 Wall Street expert evaluations for ENB over the last three months, the average price forecast for the next year is $43.52; the target indicates a 14.28% upside from its current price. Interestingly, the highest price target over the next year is $48.72.
ENB analysis
In the overall market, both the medium and short-term pictures are negative. ENB is trading in the lower part of its 52-week range, which is not a good signal. Although the S&P500 Index is also not doing great, it is still sitting in the middle of its 52-week range.
A factor that has weighed heavily on Enbridge’s stock price is the ongoing energy transition, as the world begins to shift away from fossil fuels towards cleaner sources of energy. While Enbridge has taken steps to diversify its operations and invest in renewable energy, its core business remains in transporting oil and gas, which may well become increasingly unattractive to investors over time.
In turn, investors are watching the stock closely to see if it can turn its fortunes around, as Enbridge remains a well-managed company with a strong balance sheet and a history of generating steady cash flows. The company also continued to pay dividends throughout the pandemic.
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