Is Enbridge Stock a Buy?
Energy stocks have been hammered during the most recent market downturn and that includes Canada's Enbridge (NYSE: ENB). After falling roughly 45% from its February highs, the diversified midstream company now offers an over 9% yield. What happened?And why, exactly, has Enbridge been telling investors it can handle this blow?
There are three very big trends going on in the broader energy market today, and they are combining in a painful way for energy-related companies like Enbridge. The first is COVID-19, which is clearly making big headlines around the world. Alone, this would be bad for the energy sector because the current approach to containing the disease is for countries to, essentially, shut down virtually all activity. People staying at home and businesses closing is not conducive to demand for oil and natural gas. It's also likely to lead to recessionary conditions, perhaps on a global scale. That, too, is bad for demand.
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Source Fool.com
