Kinder Morgan (KMI) Advances But Underperforms Market: Key Facts
The latest trading session saw Kinder Morgan (KMI) ending at $17.64, denoting a +0.4% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.59%. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, added 0.66%.
The oil and natural gas pipeline and storage company's stock has climbed by 3.72% in the past month, exceeding the Oils-Energy sector's loss of 0.43% and lagging the S&P 500's gain of 5.16%.
Analysts and investors alike will be keeping a close eye on the performance of Kinder Morgan in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.30, showcasing a 3.23% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $4.13 billion, showing a 9.77% drop compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.10 per share and revenue of $15.47 billion, indicating changes of -5.17% and -19.43%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Kinder Morgan. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, there's been a 0.05% fall in the Zacks Consensus EPS estimate. Kinder Morgan is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Kinder Morgan is at present trading with a Forward P/E ratio of 15.95. For comparison, its industry has an average Forward P/E of 17.52, which means Kinder Morgan is trading at a discount to the group.
It is also worth noting that KMI currently has a PEG ratio of 5.32. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Oil and Gas - Production and Pipelines stocks are, on average, holding a PEG ratio of 4.77 based on yesterday's closing prices.
The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 52, which puts it in the top 21% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report
