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Kinder Morgan (KMI) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

In the latest trading session, Kinder Morgan (KMI) closed at $20.20, marking a -0.93% move from the previous day. This move lagged the S&P 500's daily loss of 0.05%. Elsewhere, the Dow gained 0.19%, while the tech-heavy Nasdaq lost 0.36%.

Prior to today's trading, shares of the oil and natural gas pipeline and storage company had lost 1.26% over the past month. This has was narrower than the Oils-Energy sector's loss of 8.75% and the S&P 500's loss of 1.58% in that time.

KMI will be looking to display strength as it nears its next earnings release. On that day, KMI is projected to report earnings of $0.22 per share, which would represent year-over-year growth of 4.76%. Our most recent consensus estimate is calling for quarterly revenue of $3.52 billion, unchanged from the year-ago period.

KMI's full-year Zacks Consensus Estimates are calling for earnings of $0.95 per share and revenue of $14.16 billion. These results would represent year-over-year changes of +6.74% and +0.08%, respectively.

Investors might also notice recent changes to analyst estimates for KMI. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.78% lower. KMI is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note KMI's current valuation metrics, including its Forward P/E ratio of 21.38. This valuation marks a premium compared to its industry's average Forward P/E of 16.3.

It is also worth noting that KMI currently has a PEG ratio of 4.28. 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 was holding an average PEG ratio of 3.75 at yesterday's closing price.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 96, putting it in the top 38% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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