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Kinder Morgan (KMI) Stock Moves -0.13%: What You Should Know

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In the latest trading session, Kinder Morgan (KMI - Free Report) closed at $15.55, marking a -0.13% move from the previous day. This change was narrower than the S&P 500's daily loss of 1.58%. Elsewhere, the Dow lost 1.99%, while the tech-heavy Nasdaq lost 1.63%.

Heading into today, shares of the oil and natural gas pipeline and storage company had lost 9.32% over the past month, outpacing the Oils-Energy sector's loss of 11.28% and lagging the S&P 500's loss of 6.62% in that time.

Investors will be hoping for strength from KMI as it approaches its next earnings release, which is expected to be January 16, 2019. The company is expected to report EPS of $0.24, up 14.29% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.05 billion, up 11.56% from the year-ago period.

KMI's full-year Zacks Consensus Estimates are calling for earnings of $0.87 per share and revenue of $14.35 billion. These results would represent year-over-year changes of +31.82% and +4.73%, respectively.

It is also important to note the recent changes to analyst estimates for KMI. These revisions typically reflect the latest short-term business trends, which can change frequently. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.16% higher. KMI currently has a Zacks Rank of #3 (Hold).

Digging into valuation, KMI currently has a Forward P/E ratio of 17.9. Its industry sports an average Forward P/E of 16.71, so we one might conclude that KMI is trading at a premium comparatively.

Also, we should mention that KMI has a PEG ratio of 2.11. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Oil and Gas - Production and Pipelines stocks are, on average, holding a PEG ratio of 2.66 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 78, putting it in the top 30% of all 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.

To follow KMI in the coming trading sessions, be sure to utilize Zacks.com.


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