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

·3 min read

Kinder Morgan (KMI) closed at $18.53 in the latest trading session, marking a +1.98% move from the prior day. This move outpaced the S&P 500's daily gain of 0.34%. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, lost 0.05%.

Coming into today, shares of the oil and natural gas pipeline and storage company had lost 2.57% in the past month. In that same time, the Oils-Energy sector lost 0.08%, while the S&P 500 lost 7.95%.

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 $0.29 per share, which would represent year-over-year growth of 31.82%. Meanwhile, our latest consensus estimate is calling for revenue of $4.69 billion, up 22.76% from the prior-year quarter.

KMI's full-year Zacks Consensus Estimates are calling for earnings of $1.20 per share and revenue of $18.12 billion. These results would represent year-over-year changes of -9.09% and +9.07%, respectively.

Investors should also note any recent changes to analyst estimates for Kinder Morgan. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 0.33% lower within the past month. Kinder Morgan currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Kinder Morgan is currently trading at a Forward P/E ratio of 15.17. For comparison, its industry has an average Forward P/E of 14.66, which means Kinder Morgan is trading at a premium to the group.

It is also worth noting that KMI currently has a PEG ratio of 5.06. 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 4.42 at yesterday's closing price.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 38% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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