In the latest close session, Kinder Morgan (KMI) was up +2.05% at $28.89. The stock exceeded the S&P 500, which registered a gain of 0.8% for the day. On the other hand, the Dow registered a gain of 0.94%, and the technology-centric Nasdaq increased by 0.97%.
Shares of the oil and natural gas pipeline and storage company witnessed a gain of 1.29% over the previous month, trailing the performance of the Oils-Energy sector with its gain of 3.8%, and the S&P 500's gain of 5.12%.
Market participants will be closely following the financial results of Kinder Morgan in its upcoming release. On that day, Kinder Morgan is projected to report earnings of $0.27 per share, which would represent year-over-year growth of 8%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.88 billion, up 8.69% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.26 per share and a revenue of $16.52 billion, signifying shifts of +9.57% and +9.37%, respectively, from the last year.
Any recent changes to analyst estimates for Kinder Morgan should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.16% higher within the past month. Kinder Morgan currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Kinder Morgan is currently exchanging hands at a Forward P/E ratio of 22.43. Its industry sports an average Forward P/E of 16.59, so one might conclude that Kinder Morgan is trading at a premium comparatively.
It's also important to note that KMI currently trades at a PEG ratio of 3.11. 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 2.56 at yesterday's closing price.
The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 52, which puts it in the top 22% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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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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