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

Zacks Equity Research

Kinder Morgan (KMI) closed the most recent trading day at $20.23, moving -0.05% from the previous trading session. This move lagged the S&P 500's daily gain of 1.09%. Elsewhere, the Dow gained 1.21%, while the tech-heavy Nasdaq added 1.34%.

Heading into today, shares of the oil and natural gas pipeline and storage company had lost 0.88% over the past month, outpacing the Oils-Energy sector's loss of 3.18% and the S&P 500's loss of 1.17% in that time.

KMI will be looking to display strength as it nears its next earnings release, which is expected to be October 16, 2019. The company is expected to report EPS of $0.22, up 4.76% from the prior-year quarter. 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 $0.96 per share and revenue of $14.16 billion, which would represent changes of +7.87% and +0.08%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for KMI. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.13% higher. KMI currently has a Zacks Rank of #3 (Hold).

In terms of valuation, KMI is currently trading at a Forward P/E ratio of 21.19. This valuation marks a premium compared to its industry's average Forward P/E of 16.69.

Meanwhile, KMI's PEG ratio is currently 4.24. 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. KMI's industry had an average PEG ratio of 3.53 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 203, which puts it in the bottom 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.

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

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