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Kinder Morgan (KMI) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
Booz Allen (BAH) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

In the latest trading session, Kinder Morgan (KMI) closed at $19.98, marking a -1.77% move from the previous day. This change lagged the S&P 500's 0.28% loss on the day. Elsewhere, the Dow lost 0.39%, while the tech-heavy Nasdaq lost 0.45%.

Coming into today, shares of the oil and natural gas pipeline and storage company had gained 1.29% in the past month. In that same time, the Oils-Energy sector lost 6.16%, while the S&P 500 lost 1.59%.

Wall Street will be looking for positivity from KMI as it approaches its next earnings report date. On that day, KMI is projected to report earnings of $0.23 per share, which would represent year-over-year growth of 9.52%. Meanwhile, our latest consensus estimate is calling for revenue of $3.62 billion, up 5.7% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.98 per share and revenue of $14.72 billion, which would represent changes of +10.11% and +4.07%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for KMI. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. KMI currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that KMI has a Forward P/E ratio of 20.7 right now. Its industry sports an average Forward P/E of 19.55, so we one might conclude that KMI is trading at a premium comparatively.

It is also worth noting that KMI currently has a PEG ratio of 2.96. 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. Oil and Gas - Production and Pipelines stocks are, on average, holding a PEG ratio of 4.24 based on yesterday's closing prices.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 189, putting it in the bottom 27% 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.

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


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