In the latest trading session, Kinder Morgan (KMI) closed at $15.88, marking a +0.7% move from the previous day. This change lagged the S&P 500's 0.82% gain on the day. At the same time, the Dow added 1.05%, and the tech-heavy Nasdaq gained 0.59%.
KMI will be looking to display strength as it nears its next earnings release. In that report, analysts expect KMI to post earnings of $0.17 per share. This would mark a year-over-year decline of 22.73%. Meanwhile, our latest consensus estimate is calling for revenue of $2.86 billion, down 11.06% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.83 per share and revenue of $12.25 billion, which would represent changes of -12.63% and -7.25%, respectively, from the prior year.
Any recent changes to analyst estimates for KMI should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.07% lower. KMI is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that KMI has a Forward P/E ratio of 19.05 right now. Its industry sports an average Forward P/E of 17.26, so we one might conclude that KMI is trading at a premium comparatively.
Also, we should mention that KMI has a PEG ratio of 6.35. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Production and Pipelines industry currently had an average PEG ratio of 4.37 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 26, which puts it in the top 11% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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