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Kinder Morgan (KMI) Suffers a Larger Drop Than the General Market: Key Insights

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Kinder Morgan (KMI - Free Report) closed the latest trading day at $26.59, indicating a -1.12% change from the previous session's end. The stock's performance was behind the S&P 500's daily loss of 0.43%. Meanwhile, the Dow lost 1.01%, and the Nasdaq, a tech-heavy index, lost 0.47%.

Heading into today, shares of the oil and natural gas pipeline and storage company had lost 12.64% over the past month, lagging the Oils-Energy sector's loss of 3.14% and the S&P 500's gain of 2.6% in that time.

The upcoming earnings release of Kinder Morgan will be of great interest to investors. The company is predicted to post an EPS of $0.32, indicating a 5.88% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $3.99 billion, indicating a 3.89% upward movement from the same quarter last year.

KMI's full-year Zacks Consensus Estimates are calling for earnings of $1.25 per share and revenue of $15.94 billion. These results would represent year-over-year changes of +8.7% and +5.58%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Kinder Morgan. Recent revisions tend to reflect the latest 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 3.22% lower. Kinder Morgan is holding a Zacks Rank of #3 (Hold) right now.

With respect to valuation, Kinder Morgan is currently being traded at a Forward P/E ratio of 21.48. This valuation marks a premium compared to its industry's average Forward P/E of 15.39.

We can also see that KMI currently has a PEG ratio of 3.12. 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 2.78 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 164, putting it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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