In the latest close session, Kinder Morgan (KMI) was up +1.32% at $27.57. This change outpaced the S&P 500's 0.1% loss on the day. Meanwhile, the Dow gained 0.57%, and the Nasdaq, a tech-heavy index, lost 0.33%.
Shares of the oil and natural gas pipeline and storage company have appreciated by 3.07% over the course of the past month, underperforming the Oils-Energy sector's gain of 3.89%, and outperforming the S&P 500's gain of 2.57%.
Analysts and investors alike will be keeping a close eye on the performance of Kinder Morgan in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.29, indicating a 16% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $4.17 billion, indicating a 12.66% upward movement from the same quarter last year.
KMI's full-year Zacks Consensus Estimates are calling for earnings of $1.27 per share and revenue of $17.03 billion. These results would represent year-over-year changes of +10.43% and +12.78%, respectively.
Investors should also pay attention to any latest changes in 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 business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 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, there's been a 0.13% fall in the Zacks Consensus EPS estimate. Kinder Morgan is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Kinder Morgan currently has a Forward P/E ratio of 21.48. Its industry sports an average Forward P/E of 16.73, so one might conclude that Kinder Morgan is trading at a premium comparatively.
Also, we should mention that KMI has a PEG ratio of 3.19. 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. As the market closed yesterday, the Oil and Gas - Production and Pipelines industry was having an average PEG ratio of 3.19.
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 103, placing it within the top 42% of over 250 industries.
The Zacks Industry Rank is ordered 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.
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Kinder Morgan, Inc. (KMI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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