Kinder Morgan (KMI) closed at $32.87 in the latest trading session, marking a -2.72% move from the prior day. This change lagged the S&P 500's daily gain of 0.61%. Elsewhere, the Dow saw a downswing of 0.23%, while the tech-heavy Nasdaq appreciated by 1.19%.
The stock of oil and natural gas pipeline and storage company has risen by 9.18% in the past month, leading the Oils-Energy sector's gain of 2.35% and the S&P 500's gain of 4.44%.
The investment community will be closely monitoring the performance of Kinder Morgan in its forthcoming earnings report. On that day, Kinder Morgan is projected to report earnings of $0.31 per share, which would represent year-over-year growth of 10.71%. Simultaneously, our latest consensus estimate expects the revenue to be $4.29 billion, showing a 6.16% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.48 per share and a revenue of $18.17 billion, indicating changes of +13.85% and +7.27%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Kinder Morgan. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.99% increase. Kinder Morgan is currently a Zacks Rank #2 (Buy).
In the context of valuation, Kinder Morgan is at present trading with a Forward P/E ratio of 22.9. For comparison, its industry has an average Forward P/E of 21.79, which means Kinder Morgan is trading at a premium to the group.
We can also see that KMI currently has a PEG ratio of 2.92. 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. The average PEG ratio for the Oil and Gas - Production and Pipelines industry stood at 1.33 at the close of the market yesterday.
The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 57, putting it in the top 24% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Kinder Morgan, Inc. (KMI): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).