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Kinder Morgan (KMI) Advances While Market Declines: Some Information for Investors

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The latest trading session saw Kinder Morgan (KMI - Free Report) ending at $21, denoting a +0.14% adjustment from its last day's close. This change outpaced the S&P 500's 0.89% loss on the day. Meanwhile, the Dow lost 0.44%, and the Nasdaq, a tech-heavy index, lost 1.67%.

The oil and natural gas pipeline and storage company's stock has dropped by 0.38% in the past month, exceeding the Oils-Energy sector's loss of 2.7% and lagging the S&P 500's gain of 2.17%.

Analysts and investors alike will be keeping a close eye on the performance of Kinder Morgan in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.26, signifying a 4% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $3.82 billion, indicating a 2.29% downward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.19 per share and a revenue of $15.28 billion, representing changes of +11.21% and -0.38%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Kinder Morgan. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 shifted 4.8% downward. Kinder Morgan is currently a Zacks Rank #3 (Hold).

With respect to valuation, Kinder Morgan is currently being traded at a Forward P/E ratio of 17.62. This denotes no noticeable deviation relative to the industry's average Forward P/E of 17.62.

One should further note that KMI currently holds a PEG ratio of 2.93. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Oil and Gas - Production and Pipelines stocks are, on average, holding a PEG ratio of 3.52 based on yesterday's closing prices.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 42% 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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