Kinder Morgan (KMI) closed the most recent trading day at $20.42, moving -0.15% from the previous trading session. This change lagged the S&P 500's daily gain of 0.29%. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq added 0.3%.
Heading into today, shares of the oil and natural gas pipeline and storage company had gained 3.28% over the past month, outpacing the Oils-Energy sector's gain of 2.86% and the S&P 500's gain of 2.99% in that time.
Investors will be hoping for strength from KMI as it approaches its next earnings release. In that report, analysts expect KMI to post earnings of $0.22 per share. This would mark year-over-year growth of 4.76%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.52 billion, unchanged from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.95 per share and revenue of $14.16 billion, which would represent changes of +6.74% and +0.08%, respectively, from the prior year.
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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. KMI is currently sporting a Zacks Rank of #4 (Sell).
Digging into valuation, KMI currently has a Forward P/E ratio of 21.44. For comparison, its industry has an average Forward P/E of 17.05, which means KMI is trading at a premium to the group.
It is also worth noting that KMI currently has a PEG ratio of 4.29. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Production and Pipelines was holding an average PEG ratio of 3.87 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 153, which puts it in the bottom 41% 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.
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