Kinder Morgan (KMI) Laps the Stock Market: Here's Why

Kinder Morgan (KMI) ended the recent trading session at $33.89, demonstrating a +1.86% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.04%. Meanwhile, the Dow lost 0.15%, and the Nasdaq, a tech-heavy index, added 0.36%.

Heading into today, shares of the oil and natural gas pipeline and storage company had gained 9.12% over the past month, lagging the Oils-Energy sector's gain of 10.95% and outpacing the S&P 500's loss of 1.33%.

The investment community will be closely monitoring the performance of Kinder Morgan in its forthcoming earnings report. The company is forecasted to report an EPS of $0.36, showcasing a 5.88% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.53 billion, up 6.7% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.36 per share and a revenue of $17.73 billion, signifying shifts of +4.62% and +4.68%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for Kinder Morgan. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 1.56% fall in the Zacks Consensus EPS estimate. 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 24.46. This signifies a premium in comparison to the average Forward P/E of 19.07 for its industry.

It is also worth noting that KMI currently has a PEG ratio of 2.73. 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. By the end of yesterday's trading, the Oil and Gas - Production and Pipelines industry had an average PEG ratio of 1.65.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 87, putting it in the top 36% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.