In the latest trading session, Kinder Morgan (KMI) closed at $21.13, marking a -0.33% move from the previous day. This change lagged the S&P 500's daily loss of 0.02%. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.08%.
Heading into today, shares of the oil and natural gas pipeline and storage company had gained 6.21% over the past month, outpacing the Oils-Energy sector's gain of 4.92% and the S&P 500's gain of 3.81% in that time.
KMI will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.26, up 4% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.72 billion, down 1.51% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.96 per share and revenue of $13.76 billion. These totals would mark changes of +7.87% and -2.74%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for KMI. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 0.1% higher. KMI is currently a Zacks Rank #2 (Buy).
In terms of valuation, KMI is currently trading at a Forward P/E ratio of 21.99. Its industry sports an average Forward P/E of 17.89, so we one might conclude that KMI is trading at a premium comparatively.
Meanwhile, KMI's PEG ratio is currently 4.4. 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. KMI's industry had an average PEG ratio of 4.4 as of yesterday's close.
The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 35% 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.
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