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Why Kinder Morgan (KMI) Dipped More Than Broader Market Today

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Kinder Morgan (KMI - Free Report) ended the recent trading session at $26.89, demonstrating a -0.77% swing from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.3%. Elsewhere, the Dow lost 0.35%, while the tech-heavy Nasdaq lost 0.25%.

The oil and natural gas pipeline and storage company's stock has dropped by 0.62% in the past month, exceeding the Oils-Energy sector's loss of 1.46% and lagging the S&P 500's gain of 1.09%.

The upcoming earnings release of Kinder Morgan will be of great interest to investors. It is anticipated that the company will report an EPS of $0.33, marking a 17.86% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $4.09 billion, indicating a 1.28% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.17 per share and a revenue of $15.28 billion, signifying shifts of +9.35% and -0.38%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for Kinder Morgan. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.21% lower. Right now, Kinder Morgan possesses a Zacks Rank of #3 (Hold).

From a valuation perspective, Kinder Morgan is currently exchanging hands at a Forward P/E ratio of 23.08. This expresses a premium compared to the average Forward P/E of 16.91 of its industry.

We can additionally observe that KMI currently boasts a PEG ratio of 3.92. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Oil and Gas - Production and Pipelines industry was having an average PEG ratio of 3.4.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 183, putting it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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