Back to top

Image: Bigstock

Kinder Morgan (KMI) Stock Moves -0.71%: What You Should Know

Read MoreHide Full Article

Kinder Morgan (KMI - Free Report) closed the most recent trading day at $16.72, moving -0.71% from the previous trading session. This change was narrower than the S&P 500's 2.11% loss on the day. At the same time, the Dow lost 1.54%, and the tech-heavy Nasdaq lost 0.3%.

Heading into today, shares of the oil and natural gas pipeline and storage company had lost 8.08% over the past month, outpacing the Oils-Energy sector's loss of 11.61% and the S&P 500's loss of 8.19% in that time.

Wall Street will be looking for positivity from Kinder Morgan as it approaches its next earnings report date. In that report, analysts expect Kinder Morgan to post earnings of $0.29 per share. This would mark year-over-year growth of 31.82%. Our most recent consensus estimate is calling for quarterly revenue of $4.69 billion, up 22.76% from the year-ago period.

KMI's full-year Zacks Consensus Estimates are calling for earnings of $1.20 per share and revenue of $18.12 billion. These results would represent year-over-year changes of -9.09% and +9.07%, respectively.

It is also important to note the recent changes to analyst estimates for Kinder Morgan. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 0.33% lower. Kinder Morgan is holding a Zacks Rank of #4 (Sell) right now.

Valuation is also important, so investors should note that Kinder Morgan has a Forward P/E ratio of 14.06 right now. For comparison, its industry has an average Forward P/E of 13.57, which means Kinder Morgan is trading at a premium to the group.

It is also worth noting that KMI currently has a PEG ratio of 4.69. 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 industry currently had an average PEG ratio of 3.98 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 64, which puts it in the top 26% 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.

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


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Kinder Morgan, Inc. (KMI) - free report >>

Published in