Kinder Morgan (KMI – Free Report) closed at $27.83 in the latest trading session, marking a -1.56% move from the prior day. This change lagged the S&P 500’s daily gain of 0.55%. Elsewhere, the Dow saw a downswing of 0.06%, while the tech-heavy Nasdaq appreciated by 1.24%.
The upcoming earnings release of Kinder Morgan will be of great interest to investors. The company’s earnings per share (EPS) are projected to be $0.33, reflecting a 17.86% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.09 billion, up 1.28% from the year-ago period.
Investors should also pay attention to any latest changes in analyst estimates for Kinder Morgan. 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.
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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there’s been a 6.44% rise in the Zacks Consensus EPS estimate. As of now, Kinder Morgan holds a Zacks Rank of #3 (Hold).
With respect to valuation, Kinder Morgan is currently being traded at a Forward P/E ratio of 23.02. For comparison, its industry has an average Forward P/E of 15.05, which means Kinder Morgan is trading at a premium to the group.
Also, we should mention that KMI has a PEG ratio of 3.91. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. The Oil and Gas – Production and Pipelines industry had an average PEG ratio of 3.27 as trading concluded yesterday.
The Oil and Gas – Production and Pipelines industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 190, finds itself in the bottom 25% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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