In the latest trading session, Kinder Morgan (KMI) closed at $27.33, marking a +1.04% move from the previous day. This change lagged the S&P 500's 1.1% gain on the day. Elsewhere, the Dow saw an upswing of 0.91%, while the tech-heavy Nasdaq appreciated by 1.35%.
Prior to today's trading, shares of the oil and natural gas pipeline and storage company had lost 2.87% over the past month. This has was narrower than the Oils-Energy sector's loss of 10.32% and lagged the S&P 500's gain of 0.22% in that time.
The investment community will be paying close attention to the earnings performance of Kinder Morgan in its upcoming release. The company is expected to report EPS of $0.33, up 17.86% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $4.09 billion, reflecting a 1.28% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.17 per share and revenue of $15.28 billion, which would represent changes of +9.35% and -0.38%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Kinder Morgan. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Within the past 30 days, our consensus EPS projection has moved 0.51% lower. Kinder Morgan is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Kinder Morgan is currently trading at a Forward P/E ratio of 23.04. Its industry sports an average Forward P/E of 15.95, so one might conclude that Kinder Morgan is trading at a premium comparatively.
It's also important to note that KMI currently trades at a PEG ratio of 3.91. 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. As the market closed yesterday, the Oil and Gas - Production and Pipelines industry was having an average PEG ratio of 3.38.
The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 188, putting it in the bottom 26% of all 250+ industries.
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.
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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