Check Out Our Answer to This Foolish Energy Question

Before you go, we thought you'd like these...
Before you go close icon

In today's "Ask a Fool", a reader writes in to complain about Enbridge,'s astronomical price-to-earnings ratio! Can the price of this stock really be justified?

Enbridge, a Canadian energy delivery company, has been growing at 17% for the last five years, but its EPS has been shrinking. So what explains its incredible price multiple? Investors may be looking for value beyond the company's earnings -- and they might be right to do so.

Tune in to hear the Motley Fool's energy sector analysts explain what to look for in an energy stock's P/E, and tell us whether you agree or not in the comments below.

Do you know this energy tax "loophole"?
You already know record oil and natural gas production is changing the lives of millions of Americans. But what you probably haven't heard is that the IRS is encouraging investors to support our growing energy renaissance, offering you a tax loophole to invest in some of America's greatest energy companies. Take advantage of this profitable opportunity by grabbing your brand-new special report, "The IRS Is Daring You to Make This Investment Now!," and you'll learn about the simple strategy to take advantage of a little-known IRS rule. Don't miss out on advice that could help you cut taxes for decades to come. Click here to learn more.


The article Check Out Our Answer to This Foolish Energy Question originally appeared on

Joel South has no position in any stocks mentioned. Taylor Muckerman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

People are Reading