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Kinder Morgan (KMI) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Kinder Morgan (KMI) closed at $20.14, marking a +1.77% move from the previous day. This change outpaced the S&P 500's 0.95% gain on the day. Elsewhere, the Dow gained 0.8%, while the tech-heavy Nasdaq lost 0.28%.

Coming into today, shares of the oil and natural gas pipeline and storage company had gained 6.4% in the past month. In that same time, the Oils-Energy sector gained 8.26%, while the S&P 500 gained 0.1%.

Investors will be hoping for strength from Kinder Morgan as it approaches its next earnings release. On that day, Kinder Morgan is projected to report earnings of $0.27 per share, which would represent year-over-year growth of 17.39%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.33 billion, up 37.34% from the year-ago period.

KMI's full-year Zacks Consensus Estimates are calling for earnings of $1.14 per share and revenue of $17.17 billion. These results would represent year-over-year changes of -13.64% and +3.34%, respectively.

It is also important to note the recent changes to analyst estimates for Kinder Morgan. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 2.33% higher within the past month. Kinder Morgan is currently a Zacks Rank #1 (Strong Buy).

In terms of valuation, Kinder Morgan is currently trading at a Forward P/E ratio of 17.36. This valuation marks a premium compared to its industry's average Forward P/E of 16.4.

We can also see that KMI currently has a PEG ratio of 5.79. 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 4.55 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 47, which puts it in the top 19% 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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