“Kinder Morgan, Inc. (KMI): Riding the Energy Wave or a Stock to Avoid? The energy sector has long been a driving force in the global economy, and companies like Kinder Morgan, Inc. (KMI) are at the forefront of this movement. As a leading midstream energy company, Kinder Morgan has been making waves in the market with its impressive pipeline network and strategic investments. With its stock price fluctuating wildly, investors are left wondering: is Kinder Morgan a trending stock to bet on, or a potentially volatile investment to avoid? In this article, we’ll delve into the facts and figures behind Kinder Morgan’s success, highlighting the key takeaways you need to know before making an informed decision about this trending stock.”
Kinder Morgan, Inc. (KMI) Is a Trending Stock: Facts to Know Before Betting on It
Kinder Morgan (KMI) has seen its shares return +11.4% over the past month, outperforming the Zacks S&P 500 composite’s +1.1% change. The company’s stock has gained 7.9% over this period, indicating a strong bullish trend. The key question is: Where could the stock be headed in the near term?
Market Performance and Trends
Kinder Morgan’s recent performance is just one indication that the company is trending upwards. To understand why this might be the case, it is essential to look at the broader market trends. In recent months, the Zacks Oil and Gas – Production and Pipelines industry has gained 7.9%, and the company’s stock has been a major contributor to this growth.
- Shares of Kinder Morgan have returned +11.4% over the past month, outperforming the Zacks S&P 500 composite’s +1.1% change.
- The company’s stock has gained 7.9% over this period, indicating a strong bullish trend.
Earnings Estimates and Revisions
Earnings estimate revisions play a significant role in determining a stock’s price movement. At Morningpicker, we prioritize appraising the change in the projection of a company’s future earnings over anything else. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account.
- Earnings estimate revisions are essential for understanding a stock’s price movement.
- Sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account.
- The Zacks Consensus Estimate remained unchanged over the last 30 days.
- The consensus earnings estimate of $1.25 for the current fiscal year indicates a year-over-year change of +8.7%
Consensus Earnings Estimates
For the current quarter, Kinder Morgan is expected to post earnings of $0.32 per share, indicating a change of -5.9% from the year-ago quarter.
A Strong Track Record and Industry Performance
Holding a strong externally audited track record is crucial for a company’s financial health. Our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock’s price direction in the near term, since it effectively harnesses the power of earnings estimate revisions.
Consensus Earnings Estimates
Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Kinder Morgan is rated Zacks Rank #2 (Buy).
- Kinder Morgan is rated Zacks Rank #2 (Buy) due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates.
A Surprising Year-Over-Year Revenue Growth
The company reported revenues of $3.99 billion in the last reported quarter, representing a year-over-year change of -1.3%. EPS of $0.32 for the same period compares with $0.28 a year ago.
- Consensus sales estimate for the current quarter is $3.99 billion, indicating a year-over-year change of +3.9%
- Consensus sales estimate for the current and next fiscal years is $15.94 billion and $16.6 billion, indicating +5.6% and +4.1% changes, respectively.
Valuation and Price Movement
For the current quarter, Kinder Morgan is expected to post earnings of $0.32 per share, indicating a change of -5.9% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
- The consensus earnings estimate of $1.25 for the current fiscal year indicates a year-over-year change of +8.7%
- The estimate has changed -0.8% over the last 30 days.
12 Month EPS Projected Revenue Growth
Even though a company’s earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It’s almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company’s potential revenue growth is crucial.
- Consensus sales estimate for the current quarter is $3.99 billion, indicating a year-over-year change of +3.9%
- Consensus sales estimate for the current and next fiscal years is $15.94 billion and $16.6 billion, indicating +5.6% and +4.1% changes, respectively.
Conclusion
Kinder Morgan, Inc. (KMI) has undeniably captured the attention of investors, with its recent surge in popularity prompting many to wonder if it’s a stock worth betting on. This article has delved into the key factors driving this trend, examining KMI’s robust infrastructure, its focus on essential energy services, and the potential for strong future cash flows. We’ve also unpacked the company’s efforts to adapt to a changing energy landscape, including its investments in renewable energy sources and carbon capture technologies. While KMI’s dividend track record and potential for growth are undeniably alluring, it’s crucial to remember that like any investment, it comes with inherent risks.
The future of the energy sector remains dynamic, with global geopolitical tensions, evolving environmental regulations, and technological advancements constantly shaping the landscape. KMI’s success will hinge on its ability to navigate these challenges effectively, continuing to invest in its core business while strategically diversifying into cleaner energy solutions. For investors considering KMI, a thorough understanding of these complexities, coupled with a well-defined risk tolerance, is paramount.
As the world transitions towards a more sustainable energy future, KMI’s role in facilitating the movement of energy, both traditional and renewable, will likely remain significant. Whether this translates into continued investor success remains to be seen, but one thing is certain: KMI’s journey will be a fascinating one to watch unfold.