The most recent trading session ended with Kinder Morgan (KMI – Free Report) standing at $25.37, reflecting a +0.32% shift from the previouse trading day’s closing. This change outpaced the S&P 500’s 0.23% loss on the day. At the same time, the Dow lost 0.91%, and the tech-heavy Nasdaq gained 0.1%.
The oil and natural gas pipeline and storage company’s stock has dropped by 3.25% in the past month, exceeding the Oils-Energy sector’s loss of 7.71% and the S&P 500’s loss of 12.13%.
The investment community will be paying close attention to the earnings performance of Kinder Morgan in its upcoming release. In that report, analysts expect Kinder Morgan to post earnings of $0.35 per share. This would mark year-over-year growth of 2.94%. At the same time, our most recent consensus estimate is projecting a revenue of $4.14 billion, reflecting a 7.66% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.28 per share and revenue of $16.4 billion, which would represent changes of +11.3% and +8.64%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Kinder Morgan. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.27% higher. Kinder Morgan is currently a Zacks Rank #2 (Buy).
With respect to valuation, Kinder Morgan is currently being traded at a Forward P/E ratio of 19.79. Its industry sports an average Forward P/E of 15.74, so one might conclude that Kinder Morgan is trading at a premium comparatively.
One should further note that KMI currently holds a PEG ratio of 2.87. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. KMI’s industry had an average PEG ratio of 2.66 as of yesterday’s close.
The Oil and Gas – Production and Pipelines industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 42, positioning it in the top 17% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow KMI in the coming trading sessions, be sure to utilize Zacks.com.
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