Kinder Morgan (KMI) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Kinder Morgan (KMI) ended the recent trading session at $27.95, demonstrating a -0.85% swing from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.56%. Meanwhile, the Dow experienced a drop of 0.58%, and the technology-dominated Nasdaq saw a decrease of 0.51%.

Shares of the oil and natural gas pipeline and storage company have appreciated by 3.6% over the course of the past month, outperforming the Oils-Energy sector's gain of 2.92% and lagging the S&P 500's gain of 7.37%.

The investment community will be paying close attention to the earnings performance of Kinder Morgan in its upcoming release. On that day, Kinder Morgan is projected to report earnings of $0.27 per share, which would represent year-over-year growth of 8%. Meanwhile, the latest consensus estimate predicts the revenue to be $3.85 billion, indicating a 7.88% increase compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.26 per share and revenue of $16.36 billion, indicating changes of 9.57% and 8.35%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for Kinder Morgan. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of 25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.79% lower. Currently, Kinder Morgan is carrying a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Kinder Morgan has a Forward P/E ratio of 22.34 right now. This expresses a premium compared to the average Forward P/E of 17.32 of its industry.

We can additionally observe that KMI currently boasts a PEG ratio of 3.24. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Oil and Gas - Production and Pipelines industry currently had an average PEG ratio of 2.68 as of yesterday's close.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 141, positioning it in the bottom 43% of all 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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This article originally published on Zacks Investment Research (zacks.com).

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