Kinder Morgan (KMI) Gains As Market Dips: What You Should Know
Kinder Morgan (KMI) closed at $16.67 in the latest trading session, marking a +0.54% move from the prior day.
Kinder Morgan (KMI) closed at $16.67 in the latest trading session, marking a +0.54% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.94%. Meanwhile, the Dow lost 1.07%, and the Nasdaq, a tech-heavy index, lost 0.39%.
Coming into today, shares of the oil and natural gas pipeline and storage company had gained 2.16% in the past month. In that same time, the Oils-Energy sector gained 5.65%, while the S&P 500 gained 5.72%.
Wall Street will be looking for positivity from Kinder Morgan as it approaches its next earnings report date. On that day, Kinder Morgan is projected to report earnings of $0.27 per share, which would represent no growth from the year-ago period. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.39 billion, up 8.75% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Kinder Morgan. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.07% higher. Kinder Morgan currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Kinder Morgan has a Forward P/E ratio of 16.02 right now. Its industry sports an average Forward P/E of 12, so we one might conclude that Kinder Morgan is trading at a premium comparatively.
Also, we should mention that KMI has a PEG ratio of 5.34. 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 4.85 based on yesterday's closing prices.
The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 24% 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.
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