Why the Market Dipped But Kinder Morgan (KMI) Gained Today
In the latest market close, Kinder Morgan (KMI) reached $18.05, with a +1.23% movement compared to the previous day. This change outpaced the S&P 500's 0.8% loss on the day. At the same time, the Dow lost 0.76%, and the tech-heavy Nasdaq lost 1.18%.
The oil and natural gas pipeline and storage company's stock has climbed by 1.89% in the past month, exceeding the Oils-Energy sector's gain of 0.83% and lagging the S&P 500's gain of 3.4%.
Market participants will be closely following the financial results of Kinder Morgan in its upcoming release. On that day, Kinder Morgan is projected to report earnings of $0.30 per share, which would represent a year-over-year decline of 3.23%. Simultaneously, our latest consensus estimate expects the revenue to be $4.13 billion, showing a 9.77% drop compared to the year-ago quarter.
Investors should also note any recent changes to analyst estimates for Kinder Morgan. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, there's been a 3.35% rise in the Zacks Consensus EPS estimate. As of now, Kinder Morgan holds a Zacks Rank of #3 (Hold).
Investors should also note Kinder Morgan's current valuation metrics, including its Forward P/E ratio of 15.46. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 15.46.
One should further note that KMI currently holds a PEG ratio of 5.15. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. KMI's industry had an average PEG ratio of 4.63 as of yesterday's close.
The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 101, putting it in the top 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report
