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Kinder Morgan (KMI) Laps the Stock Market: Here's Why
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In the latest market close, Kinder Morgan (KMI - Free Report) reached $17.57, with a +1.44% movement compared to the previous day. The stock exceeded the S&P 500, which registered a gain of 0.38% for the day. Meanwhile, the Dow experienced a rise of 1.47%, and the technology-dominated Nasdaq saw a decrease of 0.23%.
The the stock of oil and natural gas pipeline and storage company has risen by 5.93% in the past month, leading the Oils-Energy sector's gain of 0.32% and undershooting the S&P 500's gain of 10.72%.
Market participants will be closely following the financial results of Kinder Morgan in its upcoming release. The company is expected to report EPS of $0.30, down 3.23% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.14 billion, down 9.56% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.10 per share and a revenue of $15.57 billion, indicating changes of -5.17% and -18.93%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Kinder Morgan. Recent revisions tend to reflect the latest near-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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.68% lower. 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 15.72. This represents a discount compared to its industry's average Forward P/E of 17.1.
It is also worth noting that KMI currently has a PEG ratio of 5.24. 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 was holding an average PEG ratio of 4.83 at yesterday's closing price.
The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 50, placing it within the top 20% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Kinder Morgan (KMI) Laps the Stock Market: Here's Why
In the latest market close, Kinder Morgan (KMI - Free Report) reached $17.57, with a +1.44% movement compared to the previous day. The stock exceeded the S&P 500, which registered a gain of 0.38% for the day. Meanwhile, the Dow experienced a rise of 1.47%, and the technology-dominated Nasdaq saw a decrease of 0.23%.
The the stock of oil and natural gas pipeline and storage company has risen by 5.93% in the past month, leading the Oils-Energy sector's gain of 0.32% and undershooting the S&P 500's gain of 10.72%.
Market participants will be closely following the financial results of Kinder Morgan in its upcoming release. The company is expected to report EPS of $0.30, down 3.23% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.14 billion, down 9.56% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.10 per share and a revenue of $15.57 billion, indicating changes of -5.17% and -18.93%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Kinder Morgan. Recent revisions tend to reflect the latest near-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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.68% lower. 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 15.72. This represents a discount compared to its industry's average Forward P/E of 17.1.
It is also worth noting that KMI currently has a PEG ratio of 5.24. 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 was holding an average PEG ratio of 4.83 at yesterday's closing price.
The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 50, placing it within the top 20% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.