In the latest trading session, Kinder Morgan (KMI) closed at $20.26, marking a +1.1% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.66%. At the same time, the Dow added 1%, and the tech-heavy Nasdaq gained 0.38%.
Prior to today's trading, shares of the oil and natural gas pipeline and storage company had lost 3.14% over the past month. This has was narrower than the Oils-Energy sector's loss of 10.5% and the S&P 500's loss of 5.01% 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 $0.22, up 4.76% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.52 billion, unchanged from the prior-year quarter.
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.
It is also important to note the recent changes to analyst estimates for KMI. These revisions help to show the ever-changing nature of near-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. 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 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. The Zacks Consensus EPS estimate has moved 0.78% lower within the past month. KMI currently has a Zacks Rank of #4 (Sell).
Investors should also note KMI's current valuation metrics, including its Forward P/E ratio of 21.01. For comparison, its industry has an average Forward P/E of 15.5, which means KMI is trading at a premium to the group.
Investors should also note that KMI has a PEG ratio of 4.2 right now. 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 was holding an average PEG ratio of 3.6 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 105, putting it in the top 42% 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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