Kinder Morgan (KMI) Gains But Lags Market: What You Should Know

In the latest trading session, Kinder Morgan (KMI) closed at $15.97, marking a +1.08% move from the previous day. The stock lagged the S&P 500's daily gain of 1.48%. Elsewhere, the Dow gained 2.21%, while the tech-heavy Nasdaq added 0.77%.

Wall Street will be looking for positivity from KMI as it approaches its next earnings report date. On that day, KMI is projected to report earnings of $0.17 per share, which would represent a year-over-year decline of 22.73%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.86 billion, down 11.06% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.72 per share and revenue of $12.25 billion. These totals would mark changes of -24.21% and -7.25%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for KMI. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 9.47% lower. KMI is currently a Zacks Rank #3 (Hold).

Looking at its valuation, KMI is holding a Forward P/E ratio of 21.99. This valuation marks a premium compared to its industry's average Forward P/E of 16.04.

Investors should also note that KMI has a PEG ratio of 7.33 right now. 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. The Oil and Gas - Production and Pipelines industry currently had an average PEG ratio of 3.4 as of yesterday's close.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 32, which puts it in the top 13% 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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