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Kinder Morgan (KMI) Outpaces Stock Market Gains: What You Should Know

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Kinder Morgan (KMI - Free Report) closed the most recent trading day at $20.79, moving +1.29% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.97%. Meanwhile, the Dow gained 1.35%, and the Nasdaq, a tech-heavy index, added 1.39%.

Prior to today's trading, shares of the oil and natural gas pipeline and storage company had gained 1.13% over the past month. This has outpaced the Oils-Energy sector's loss of 2.99% and the S&P 500's gain of 0.64% in that time.

Investors will be hoping for strength from KMI as it approaches its next earnings release. In that report, analysts expect KMI to post earnings of $0.23 per share. This would mark year-over-year growth of 9.52%. Meanwhile, our latest consensus estimate is calling for revenue of $3.62 billion, up 5.7% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.99 per share and revenue of $14.72 billion. These totals would mark changes of +11.24% and +4.07%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for KMI. 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.

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, 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. Within the past 30 days, our consensus EPS projection has moved 0.25% higher. KMI is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, KMI is holding a Forward P/E ratio of 20.83. Its industry sports an average Forward P/E of 15.79, so we one might conclude that KMI is trading at a premium comparatively.

Also, we should mention that KMI has a PEG ratio of 2.98. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. KMI's industry had an average PEG ratio of 4.28 as of yesterday's close.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 170, which puts it in the bottom 34% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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