Back to top

Image: Bigstock

Kinder Morgan (KMI) Laps the Stock Market: Here's Why

Read MoreHide Full Article

Kinder Morgan (KMI - Free Report) closed the most recent trading day at $27.38, moving +2.78% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.3% for the day. Meanwhile, the Dow experienced a drop of 0.48%, and the technology-dominated Nasdaq saw an increase of 0.03%.

Shares of the oil and natural gas pipeline and storage company have appreciated by 0.3% over the course of the past month, underperforming the Oils-Energy sector's gain of 1.33%, and the S&P 500's gain of 2.09%.

The investment community will be closely monitoring the performance of Kinder Morgan in its forthcoming earnings report. The company is forecasted to report an EPS of $0.29, showcasing a 16% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $4.17 billion, indicating a 12.66% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.27 per share and revenue of $17.03 billion, which would represent changes of +10.43% and +12.78%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Kinder Morgan. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.13% lower. Currently, Kinder Morgan is carrying a Zacks Rank of #3 (Hold).

In the context of valuation, Kinder Morgan is at present trading with a Forward P/E ratio of 21.03. This denotes a premium relative to the industry average Forward P/E of 16.27.

Meanwhile, KMI's PEG ratio is currently 3.13. 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. Oil and Gas - Production and Pipelines stocks are, on average, holding a PEG ratio of 3.11 based on yesterday's closing prices.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 58, positioning it in the top 24% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


See More Zacks Research for These Tickers


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


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

Published in