Enbridge Inc (TSX:ENB)(NYSE:ENB) is a stock that has fallen hard over the past year. Rising oil prices, a recovery industry, and even strong financials have done little to help the stock pull out of this spiral.
Instead, Enbridge’s stock has continually found ways to dive further and further down.
It didn’t help that the company got more bad news this week when a judge in Minnesota recommended that Enbridge’s proposed Line 3 pipeline replacement be laid where the current pipeline is, and that would mean having to removing the existing pipe first, which would disrupt shipments for over a year.
Enbridge remains committed and will continue to try and convince the Minnesota Public Utilities Commission to agree on its preferred path instead. However, we won’t find out if the company is successful in its efforts until June, which is when a vote is expected to take place.
The share price was down more than 5% on the news and the company hit a new 52-week low in the process. In the past 12 months, Enbridge’s stock has declined more than 33% and any support that investors may have thought that the stock had is now gone.
Value investors will point to the stock’s great fundamentals as to why it is a terrific buy today. The stock currently trades near its book value and also provides investors with a yield of more than 6.6%.
Enbridge has a lot of upside from where it is today, and while it may take a strong stomach to buy amid this sell-off, it could earn your portfolio a great return in the long run.
