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Kinder Morgan (KMI) Gains As Market Dips: What You Should Know

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The latest trading session saw Kinder Morgan (KMI - Free Report) ending at $21.79, denoting a +0.93% adjustment from its last day's close. The stock outpaced the S&P 500's daily loss of 0.19%. On the other hand, the Dow registered a gain of 0.09%, and the technology-centric Nasdaq decreased by 0.36%.

Heading into today, shares of the oil and natural gas pipeline and storage company had gained 2.81% over the past month, outpacing the Oils-Energy sector's loss of 1.95% and the S&P 500's gain of 2.06% in that time.

Market participants will be closely following the financial results of Kinder Morgan in its upcoming release. The company is forecasted to report an EPS of $0.27, showcasing an 8% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $3.82 billion, indicating a 2.29% decline compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.19 per share and a revenue of $15.28 billion, representing changes of +11.21% and -0.38%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Kinder Morgan. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, the Zacks Consensus EPS estimate has shifted 0.34% upward. Kinder Morgan currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Kinder Morgan is currently trading at a Forward P/E ratio of 18.08. This represents no noticeable deviation compared to its industry's average Forward P/E of 18.08.

One should further note that KMI currently holds a PEG ratio of 3. 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. The average PEG ratio for the Oil and Gas - Production and Pipelines industry stood at 3 at the close of the market yesterday.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 188, finds itself in the bottom 26% echelons 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.

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


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