Zacks Equity Research
3 min read
Kinder Morgan (KMI) closed the most recent trading day at $31.31, moving +1.89% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 1.14%. At the same time, the Dow added 0.61%, and the tech-heavy Nasdaq gained 1.69%.
Prior to today’s trading, shares of the oil and natural gas pipeline and storage company had lost 4.21% lagged the Oils-Energy sector’s gain of 1.41% and the S&P 500’s loss of 2.85%.
Analysts and investors alike will be keeping a close eye on the performance of Kinder Morgan in its upcoming earnings disclosure. 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. Simultaneously, our latest consensus estimate expects the revenue to be $4.49 billion, showing a 8.33% escalation compared to the year-ago quarter.
KMI’s full-year Zacks Consensus Estimates are calling for earnings of $1.55 per share and revenue of $18.49 billion. These results would represent year-over-year changes of +19.23% and +9.19%, respectively.
It’s also important for investors to be aware of any recent modifications to analyst estimates for Kinder Morgan. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 0.49% higher within the past month. Kinder Morgan currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Kinder Morgan has a Forward P/E ratio of 19.81 right now. This represents a premium compared to its industry average Forward P/E of 19.41.
We can additionally observe that KMI currently boasts a PEG ratio of 2.17. 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 had an average PEG ratio of 1.81 as trading concluded yesterday.
