Kinder Morgan (KMI) closed at $32.96 in the latest trading session, marking a -1.02% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 2.51% for the day. On the other hand, the Dow registered a gain of 2.85%, and the technology-centric Nasdaq increased by 2.8%.
Coming into today, shares of the oil and natural gas pipeline and storage company had gained 1.03% in the past month. In that same time, the Oils-Energy sector gained 7.33%, while the S&P 500 lost 1.66%.
The investment community will be paying close attention to the earnings performance of Kinder Morgan in its upcoming release. The company's earnings per share (EPS) are projected to be $0.38, reflecting a 11.76% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $4.65 billion, showing a 9.72% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.4 per share and a revenue of $17.91 billion, representing changes of +7.69% and +5.77%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Kinder Morgan. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.03% increase. Kinder Morgan is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Kinder Morgan is holding a Forward P/E ratio of 23.79. For comparison, its industry has an average Forward P/E of 19.46, which means Kinder Morgan is trading at a premium to the group.
We can also see that KMI currently has a PEG ratio of 3.04. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Oil and Gas - Production and Pipelines was holding an average PEG ratio of 1.85 at yesterday's closing price.
The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 157, positioning it in the bottom 36% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Kinder Morgan, Inc. (KMI): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).