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

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Kinder Morgan (KMI - Free Report) closed the most recent trading day at $16.01, moving -1.54% from the previous trading session. This change lagged the S&P 500's 1.32% gain on the day. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, lost 0.15%.

Heading into today, shares of the oil and natural gas pipeline and storage company had lost 2.93% over the past month, outpacing the Oils-Energy sector's loss of 6.8% and lagging the S&P 500's gain of 3.61% in that time.

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 $0.26 per share. This would mark a year-over-year decline of 3.7%. Our most recent consensus estimate is calling for quarterly revenue of $3.39 billion, up 8.75% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.32 per share and revenue of $15.59 billion, which would represent changes of +50% and +33.29%, respectively, from the prior year.

Any recent changes to analyst estimates for Kinder Morgan should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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. Within the past 30 days, our consensus EPS projection has moved 1.99% lower. Kinder Morgan currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Kinder Morgan is currently trading at a Forward P/E ratio of 12.35. This valuation marks a discount compared to its industry's average Forward P/E of 14.91.

Meanwhile, KMI's PEG ratio is currently 4.12. 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 4.18 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 102, which puts it in the top 41% 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.

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