Kinder Morgan (KMI) Outpaces Stock Market Gains: What You Should Know
Kinder Morgan (KMI) closed the latest trading day at $17.48, indicating a +1.51% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily gain of 1.37%. On the other hand, the Dow registered a gain of 1.4%, and the technology-centric Nasdaq increased by 1.38%.
Shares of the oil and natural gas pipeline and storage company witnessed a gain of 2.5% over the previous month, beating the performance of the Oils-Energy sector with its loss of 2.08% and underperforming the S&P 500's gain of 5.37%.
Market participants will be closely following the financial results of Kinder Morgan in its upcoming release. The company is expected to report EPS of $0.30, down 3.23% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $4.14 billion, indicating a 9.56% decrease compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.10 per share and revenue of $15.57 billion, which would represent changes of -5.17% and -18.93%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Kinder Morgan. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.45% higher. Currently, Kinder Morgan is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Kinder Morgan is presently trading at a Forward P/E ratio of 15.61. This valuation marks a discount compared to its industry's average Forward P/E of 17.04.
It's also important to note that KMI currently trades at a PEG ratio of 5.2. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Oil and Gas - Production and Pipelines was holding an average PEG ratio of 4.73 at yesterday's closing price.
The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 52, positioning it in the top 21% 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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Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report
