Kinder Morgan (KMI) Stock Sinks As Market Gains: What You Should Know
Kinder Morgan (KMI) closed the most recent trading day at $19.87, moving -0.55% from the previous trading session. This move lagged the S&P 500's daily gain of 0.5%. Meanwhile, the Dow gained 0.54%, and the Nasdaq, a tech-heavy index, added 0.76%.
Coming into today, shares of the oil and natural gas pipeline and storage company had gained 5.83% in the past month. In that same time, the Oils-Energy sector gained 2.26%, while the S&P 500 gained 2.53%.
KMI will be looking to display strength as it nears its next earnings release. In that report, analysts expect KMI to post earnings of $0.25 per share. This would mark year-over-year growth of 13.64%. Our most recent consensus estimate is calling for quarterly revenue of $3.60 billion, up 5.32% from the year-ago period.
KMI's full-year Zacks Consensus Estimates are calling for earnings of $1 per share and revenue of $15.15 billion. These results would represent year-over-year changes of +12.36% and +7.09%, respectively.
Any recent changes to analyst estimates for KMI should also be noted by investors. Recent revisions tend to reflect the latest 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.25% higher within the past month. KMI is currently a Zacks Rank #2 (Buy).
Looking at its valuation, KMI is holding a Forward P/E ratio of 20.03. This represents a premium compared to its industry's average Forward P/E of 18.51.
Also, we should mention that KMI has a PEG ratio of 2.67. 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. Oil and Gas - Production and Pipelines stocks are, on average, holding a PEG ratio of 2.67 based on yesterday's closing prices.
The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 86, putting it in the top 34% 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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