Kinder Morgan (KMI) closed the most recent trading day at $20.17, moving -0.59% from the previous trading session. This move was narrower than the S&P 500’s daily loss of 1.79%. At the same time, the Dow lost 1.86%, and the tech-heavy Nasdaq lost 1.56%.
Heading into today, shares of the oil and natural gas pipeline and storage company had gained 0.84% over the past month, lagging the Oils-Energy sector’s gain of 3.09% and outpacing the S&P 500’s gain of 0.72% in that time.
KMI will be looking to display strength as it nears its next earnings release. In that report, analysts expect KMI to post earnings of $0.22 per share. This would mark year-over-year growth of 4.76%. Our most recent consensus estimate is calling for quarterly revenue of $3.52 billion, unchanged from the year-ago period.
KMI’s full-year Zacks Consensus Estimates are calling for earnings of $0.95 per share and revenue of $14.16 billion. These results would represent year-over-year changes of +6.74% and +0.08%, respectively.
Investors should also note any recent changes to analyst estimates for KMI. These recent revisions tend to reflect the evolving nature of short-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. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.54% lower. KMI is currently a Zacks Rank #3 (Hold).
In terms of valuation, KMI is currently trading at a Forward P/E ratio of 21.39. Its industry sports an average Forward P/E of 17.05, so we one might conclude that KMI is trading at a premium comparatively.
Investors should also note that KMI has a PEG ratio of 4.28 right now. 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. Oil and Gas – Production and Pipelines stocks are, on average, holding a PEG ratio of 3.7 based on yesterday’s closing prices.
The Oil and Gas – Production and Pipelines industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 115, which puts it in the top 46% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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