What investors should know

Kinder Morgan (KMI) closed the most recent trading day at $19.67, moving -0.41% from the previous trading session. The company’s shares fell below the S&P 500 Index, which was up 0.77% on the day. Meanwhile, the Dow rose 0.49% and the tech-dominated Nasdaq rose 0.95%.

Shares of the oil and gas pipelines and storage company lost 0.56% from the previous month, outperforming the Oil & Energy sector’s loss of 7.24% and underperforming the S&P 500 Index’s gain of 3.71%.

The investing community will be paying close attention to Kinder Morgan’s performance in the upcoming release. The company’s earnings per share (EPS) are projected to be $0.25, an increase of 4.17% compared to the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $3.88 billion, reflecting growth of 10.89% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting for the project to report earnings of $1.18 per share and revenue of $15.84 billion, which would represent changes of +10.28% and +3.28%, respectively, from the prior year.

It is also important for investors to be aware of any recent modifications to analyst estimates for Kinder Morgan. Such recent developments usually indicate a changing landscape of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.

Research indicates that these estimate changes are directly correlated with near-term stock price momentum. To leverage this, we have created the Zacks Rank, a unique model which takes estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past 30 days, the Zacks Consensus EPS estimate has moved 1.09% lower. Kinder Morgan is currently sporting a Zacks Rank #3 (Hold).

In terms of valuation, Kinder Morgan is currently trading at a Forward P/E ratio of 16.57. This means there is no noticeable deviation from the industry’s average Forward P/E of 16.57.

It is also worth adding that KMI currently has a PEG ratio of 3.09. The PEG ratio is similar to the commonly used P/E ratio, but this measure also takes into account the company’s expected earnings growth rate. At yesterday’s closing price, Oil & Gas – Production & Pipelines held an average PEG ratio of 3.19.

The Oil & Gas – Production & Pipelines industry is part of the Oil & Energy sector. This industry currently has a Zacks Industry Rank of 56, putting it in the top 23% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst based on the average Zacks Rank of the individual companies within each of these sectors. Our research shows that industries that receive a top 50% rating outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock moving metrics and more on Zacks.com.

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