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Kinder Morgan (KMI) Dips More Than Broader Markets: What You Should Know

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Kinder Morgan (KMI - Free Report) closed at $17.93 in the latest trading session, marking a -1.81% move from the prior day. This change lagged the S&P 500's 1.2% loss on the day. Elsewhere, the Dow lost 1.1%, while the tech-heavy Nasdaq lost 2.86%.

Coming into today, shares of the oil and natural gas pipeline and storage company had lost 3.28% in the past month. In that same time, the Oils-Energy sector lost 3.14%, while the S&P 500 lost 4.77%.

Kinder Morgan will be looking to display strength as it nears its next earnings release. In that report, analysts expect Kinder Morgan to post earnings of $0.30 per share. This would mark year-over-year growth of 11.11%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.1 billion, up 15.23% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.16 per share and revenue of $19.37 billion. These totals would mark changes of -12.12% and +16.63%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Kinder Morgan. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 0.17% higher. Kinder Morgan is currently a Zacks Rank #3 (Hold).

Investors should also note Kinder Morgan's current valuation metrics, including its Forward P/E ratio of 15.8. This represents a premium compared to its industry's average Forward P/E of 13.77.

We can also see that KMI currently has a PEG ratio of 5.27. 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. The Oil and Gas - Production and Pipelines was holding an average PEG ratio of 3.22 at yesterday's closing price.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 37, putting it in the top 15% 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.

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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