In the latest close session, Kinder Morgan (KMI) was down 1.16% at $31.60. This change lagged the S&P 500's 1.06% gain on the day. Meanwhile, the Dow gained 1.18%, and the Nasdaq, a tech-heavy index, added 1.4%.
The stock of oil and natural gas pipeline and storage company has risen by 2.73% in the past month, lagging the Oils-Energy sector's gain of 4.7% and overreaching the S&P 500's gain of 2.46%.
The investment community will be closely monitoring the performance of Kinder Morgan in its forthcoming earnings report. In that report, analysts expect Kinder Morgan to post earnings of $0.33 per share. This would mark year-over-year growth of 13.79%. Simultaneously, our latest consensus estimate expects the revenue to be $4.49 billion, showing a 8.33% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.54 per share and a revenue of $18.49 billion, indicating changes of +18.46% and +9.19%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Kinder Morgan. These revisions help to show the ever-changing nature 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.74% upward. As of now, Kinder Morgan holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Kinder Morgan is holding a Forward P/E ratio of 20.73. This valuation marks a premium compared to its industry average Forward P/E of 20.35.
Also, we should mention that KMI has a PEG ratio of 2.27. 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. The Oil and Gas - Production and Pipelines was holding an average PEG ratio of 1.9 at yesterday's closing price.
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 24% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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