Kinder Morgan (KMI) Declines More Than Market: Some Information for Investors

In the latest trading session, Kinder Morgan (KMI) closed at $32.96, marking a -1.02% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.21%. Meanwhile, the Dow experienced a drop of 0.07%, and the technology-dominated Nasdaq saw an increase of 0.01%.

Prior to today's trading, shares of the oil and natural gas pipeline and storage company had gained 7.45% outpaced the Oils-Energy sector's gain of 6.06% and the S&P 500's loss of 2.26%.

Market participants will be closely following the financial results of Kinder Morgan in its upcoming release. The company is predicted to post an EPS of $0.37, indicating a 8.82% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.51 billion, indicating a 6.33% increase compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.39 per share and revenue of $17.75 billion, indicating changes of +6.92% and +4.82%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Kinder Morgan. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 2.04% higher within the past month. Kinder Morgan currently has a Zacks Rank of #3 (Hold).

Investors should also note Kinder Morgan's current valuation metrics, including its Forward P/E ratio of 24.03. This denotes a premium relative to the industry average Forward P/E of 19.39.

It is also worth noting that KMI currently has a PEG ratio of 3.07. 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. By the end of yesterday's trading, the Oil and Gas - Production and Pipelines industry had an average PEG ratio of 1.66.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 88, positioning it in the top 36% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.