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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 at $17.61 in the latest trading session, marking a +1.03% move from the prior day. This change outpaced the S&P 500's 0.92% gain on the day. Meanwhile, the Dow gained 0.51%, and the Nasdaq, a tech-heavy index, added 0.54%.

Heading into today, shares of the oil and natural gas pipeline and storage company had gained 9.42% over the past month, outpacing the Oils-Energy sector's gain of 4.11% and the S&P 500's loss of 0.85% in that time.

Kinder Morgan will be looking to display strength as it nears its next earnings release. On that day, Kinder Morgan is projected to report earnings of $0.27 per share, which would represent no growth from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.39 billion, up 8.75% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for Kinder Morgan. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.63% lower. Kinder Morgan is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Kinder Morgan is currently trading at a Forward P/E ratio of 16.84. Its industry sports an average Forward P/E of 12.5, so we one might conclude that Kinder Morgan is trading at a premium comparatively.

It is also worth noting that KMI currently has a PEG ratio of 5.61. 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. KMI's industry had an average PEG ratio of 4.95 as of yesterday's close.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 105, putting it in the top 42% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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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