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

Kinder Morgan (KMI) closed at $17.48 in the latest trading session, marking a +0.92% move from the prior day. This move outpaced the S&P 500's daily gain of 0.53%. At the same time, the Dow added 0.33%, and the tech-heavy Nasdaq lost 5.2%.

Heading into today, shares of the oil and natural gas pipeline and storage company had lost 6.12% over the past month, lagging the Oils-Energy sector's loss of 5.49% and the S&P 500's gain of 0.67% in that time.

Kinder Morgan will be looking to display strength as it nears its next earnings release. In that report, analysts expect Kinder Morgan to post earnings of $0.30 per share. This would mark a year-over-year decline of 6.25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.24 billion, up 22.14% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.11 per share and revenue of $20.86 billion, which would represent changes of -4.31% and +8.66%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Kinder Morgan. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 moved 0.77% lower. 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 15.6 right now. This represents a premium compared to its industry's average Forward P/E of 15.29.

Meanwhile, KMI's PEG ratio is currently 5.2. 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. The Oil and Gas - Production and Pipelines industry currently had an average PEG ratio of 4.05 as of yesterday's close.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 56, putting it in the top 23% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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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Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report

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