In the latest trading session, Kinder Morgan (KMI) closed at $18.32, marking a -0.87% move from the previous day. This move lagged the S&P 500's daily loss of 0.78%. Elsewhere, the Dow lost 0.88%, while the tech-heavy Nasdaq lost 0.26%.
Heading into today, shares of the oil and natural gas pipeline and storage company had gained 3.65% over the past month, outpacing the Oils-Energy sector's gain of 2.79% and the S&P 500's loss of 3.4% in that time.
Investors will be hoping for strength from Kinder Morgan as it approaches its next earnings release. In that report, analysts expect Kinder Morgan to post earnings of $0.29 per share. This would mark year-over-year growth of 31.82%. Our most recent consensus estimate is calling for quarterly revenue of $4.69 billion, up 22.76% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.20 per share and revenue of $18.12 billion, which would represent changes of -9.09% and +9.07%, respectively, from the prior year.
Any recent changes to analyst estimates for Kinder Morgan should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Kinder Morgan is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, Kinder Morgan is holding a Forward P/E ratio of 15.37. Its industry sports an average Forward P/E of 14.95, so we one might conclude that Kinder Morgan is trading at a premium comparatively.
Meanwhile, KMI's PEG ratio is currently 5.12. 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 Oil and Gas - Production and Pipelines industry currently had an average PEG ratio of 4.47 as of yesterday's close.
The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 55, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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