Kinder Morgan (KMI) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Kinder Morgan (KMI) closed at $16.53, marking a +1.54% move from the previous day. This change outpaced the S&P 500's 0.89% gain on the day. Elsewhere, the Dow gained 1.2%, while the tech-heavy Nasdaq lost 0.68%.
Prior to today's trading, shares of the oil and natural gas pipeline and storage company had lost 8.18% over the past month. This has was narrower than the Oils-Energy sector's loss of 9.72% and lagged the S&P 500's loss of 3.9% in that time.
Kinder Morgan will be looking to display strength as it nears its next earnings release. On that day, Kinder Morgan is projected to report earnings of $0.29 per share, which would represent a year-over-year decline of 9.38%. Meanwhile, our latest consensus estimate is calling for revenue of $5.24 billion, up 22.14% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.10 per share and revenue of $20.86 billion, which would represent changes of -5.17% and +8.66%, respectively, from the prior year.
Any recent changes to analyst estimates for Kinder Morgan should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.25% lower. Kinder Morgan is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Kinder Morgan is holding a Forward P/E ratio of 14.82. Its industry sports an average Forward P/E of 13.7, so we one might conclude that Kinder Morgan is trading at a premium comparatively.
Meanwhile, KMI's PEG ratio is currently 4.94. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Production and Pipelines was holding an average PEG ratio of 3.8 at yesterday's closing price.
The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 28, which puts it in the top 12% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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