Back to top

Image: Bigstock

Kinder Morgan (KMI) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

In the latest trading session, Kinder Morgan (KMI - Free Report) closed at $18.74, marking a +0.16% move from the previous day. This change lagged the S&P 500's 0.7% gain on the day. At the same time, the Dow added 0.56%, and the tech-heavy Nasdaq gained 7.5%.

Heading into today, shares of the oil and natural gas pipeline and storage company had gained 4.99% over the past month, outpacing the Oils-Energy sector's gain of 3.67% and the S&P 500's loss of 0.94% in that time.

Kinder Morgan will be looking to display strength as it nears its next earnings release. On that day, Kinder Morgan is projected to report earnings of $0.30 per share, which would represent year-over-year growth of 11.11%. Our most recent consensus estimate is calling for quarterly revenue of $5.1 billion, up 15.23% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Kinder Morgan. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Kinder Morgan is currently a Zacks Rank #3 (Hold).

In terms of valuation, Kinder Morgan is currently trading at a Forward P/E ratio of 17.04. This valuation marks a premium compared to its industry's average Forward P/E of 16.18.

We can also see that KMI currently has a PEG ratio of 5.68. 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. The Oil and Gas - Production and Pipelines was holding an average PEG ratio of 4.26 at yesterday's closing price.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 48, which puts it in the top 20% 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Kinder Morgan, Inc. (KMI) - free report >>

Published in