Kinder Morgan (KMI) Outpaces Stock Market Gains: What You Should Know

Kinder Morgan (KMI) ended the recent trading session at $33.71, demonstrating a +2.65% change from the preceding day's closing price. This change outpaced the S&P 500's 1.15% gain on the day. Elsewhere, the Dow saw an upswing of 1.38%, while the tech-heavy Nasdaq appreciated by 1.38%.

Shares of the oil and natural gas pipeline and storage company have appreciated by 0.34% over the course of the past month, underperforming the Oils-Energy sector's gain of 8.53%, and outperforming the S&P 500's loss of 5.69%.

Market participants will be closely following the financial results of Kinder Morgan in its upcoming release. The company is predicted to post an EPS of $0.37, indicating a 8.82% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $4.51 billion, up 6.33% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.39 per share and revenue of $17.75 billion, indicating changes of +6.92% and +4.82%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Kinder Morgan. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 2.19% higher. Right now, Kinder Morgan possesses a Zacks Rank of #3 (Hold).

Investors should also note Kinder Morgan's current valuation metrics, including its Forward P/E ratio of 23.7. This represents a premium compared to its industry average Forward P/E of 19.22.

Meanwhile, KMI's PEG ratio is currently 3.03. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. KMI's industry had an average PEG ratio of 1.58 as of yesterday's close.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 91, finds itself in the top 38% echelons 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

Free: See Our Top Stock And 4 Runners Up

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Kinder Morgan, Inc. (KMI): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research