Kinder Morgan (KMI) closed at $31.07 in the latest trading session, marking a +1.77% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.73%. At the same time, the Dow added 0.49%, and the tech-heavy Nasdaq gained 1.19%.
The stock of oil and natural gas pipeline and storage company has fallen by 3.39% in the past month, lagging the Oils-Energy sector’s loss of 2.73% and the S&P 500’s gain of 0.55%.
The upcoming earnings release of Kinder Morgan will be of great interest to investors. The company is forecasted to report an EPS of $0.33, showcasing a 13.79% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.38 billion, up 5.73% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.56 per share and revenue of $18.34 billion, which would represent changes of +20% and +8.26%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Kinder Morgan. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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. Within the past 30 days, our consensus EPS projection has moved 0.51% higher. 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 19.63. For comparison, its industry has an average Forward P/E of 18.52, which means Kinder Morgan is trading at a premium to the group.
Meanwhile, KMI’s PEG ratio is currently 2.15. 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 industry had an average PEG ratio of 1.77 as trading concluded yesterday.
The Oil and Gas – Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 71, putting it in the top 29% of all 250+ industries.
Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
