Here's Why Kinder Morgan (KMI) Fell More Than Broader Market
Kinder Morgan (KMI) closed at $18.05 in the latest trading session, marking a -0.33% move from the prior day. This change lagged the S&P 500's daily loss of 0.15%. At the same time, the Dow lost 0.42%, and the tech-heavy Nasdaq gained 0.09%.
The the stock of oil and natural gas pipeline and storage company has risen by 3.07% in the past month, leading the Oils-Energy sector's gain of 2.64% and undershooting the S&P 500's gain of 3.5%.
The investment community will be paying close attention to the earnings performance of Kinder Morgan in its upcoming release. The company is expected to report EPS of $0.31, unchanged from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $4.13 billion, indicating a 9.77% decrease compared to the same quarter of the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Kinder Morgan. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.11% lower. Kinder Morgan is currently a Zacks Rank #3 (Hold).
In terms of valuation, Kinder Morgan is currently trading at a Forward P/E ratio of 15.42. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 15.42.
It's also important to note that KMI currently trades at a PEG ratio of 5.14. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Oil and Gas - Production and Pipelines industry stood at 4.7 at the close of the market yesterday.
The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 88, this industry ranks in the top 35% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report
