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Kinder Morgan (KMI) Gains But Lags Market: What You Should Know

Zacks Equity Research

Kinder Morgan (KMI) closed at $20.34 in the latest trading session, marking a +1.93% move from the prior day. This move lagged the S&P 500's daily gain of 2.14%. Elsewhere, the Dow gained 2.06%, while the tech-heavy Nasdaq added 2.65%.

Heading into today, shares of the oil and natural gas pipeline and storage company had gained 3.6% over the past month, outpacing the Oils-Energy sector's loss of 5.45% and the S&P 500's loss of 6.63% in that time.

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 $0.22 per share, which would represent year-over-year growth of 4.76%. Meanwhile, our latest consensus estimate is calling for revenue of $3.62 billion, up 5.7% from the prior-year quarter.

KMI's full-year Zacks Consensus Estimates are calling for earnings of $0.99 per share and revenue of $14.72 billion. These results would represent year-over-year changes of +11.24% and +4.07%, respectively.

Any recent changes to analyst estimates for KMI should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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 has moved 0.25% higher. KMI is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note KMI's current valuation metrics, including its Forward P/E ratio of 20.45. For comparison, its industry has an average Forward P/E of 17.25, which means KMI is trading at a premium to the group.

Investors should also note that KMI has a PEG ratio of 2.92 right now. 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 4.27 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 168, putting it in the bottom 35% 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.

To follow KMI in the coming trading sessions, be sure to utilize Zacks.com.


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