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Kinder Morgan (KMI) Stock Slides as Market Rises: Facts to Know Before You Trade

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The most recent trading session ended with Kinder Morgan (KMI - Free Report) standing at $17.26, reflecting a -0.92% shift from the previouse trading day's closing. This change lagged the S&P 500's 2.11% gain on the day. Meanwhile, the Dow gained 1.18%, and the Nasdaq, a tech-heavy index, added 2.96%.

Coming into today, shares of the oil and natural gas pipeline and storage company had gained 3.14% in the past month. In that same time, the Oils-Energy sector gained 6.4%, while the S&P 500 gained 3.08%.

The upcoming earnings release of Kinder Morgan will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.32, reflecting a 6.67% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $4.26 billion, indicating a 9.62% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.19 per share and revenue of $16.8 billion. These totals would mark changes of +11.21% and +9.54%, respectively, from last year.

Any recent changes to analyst estimates for Kinder Morgan should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.37% upward. Kinder Morgan is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Kinder Morgan is presently being traded at a Forward P/E ratio of 14.6. This denotes a premium relative to the industry's average Forward P/E of 14.01.

One should further note that KMI currently holds a PEG ratio of 4.87. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. KMI's industry had an average PEG ratio of 4.87 as of yesterday's close.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 87, this industry ranks in the top 35% of all industries, numbering over 250.

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.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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