Stock of the Day

October 26, 2022

Kinder Morgan (KMI)

$26.41
-$0.19 (-0.7%)
Market Cap: $59.08B

About Kinder Morgan

Kinder Morgan, Inc. operates as an energy infrastructure company primarily in North America. The company operates through Natural Gas Pipelines, Products Pipelines, Terminals, and CO2 segments. The Natural Gas Pipelines segment owns and operates interstate and intrastate natural gas pipeline, and storage systems; natural gas gathering systems and natural gas processing and treating facilities; natural gas liquids fractionation facilities and transportation systems; and liquefied natural gas gasification, liquefaction, and storage facilities. The Products Pipelines segment owns and operates refined petroleum products, and crude oil and condensate pipelines; and associated product terminals and petroleum pipeline transmix facilities. The Terminals segment owns and/or operates liquids and bulk terminals that stores and handles various commodities, including gasoline, diesel fuel, renewable fuel and feedstocks, chemicals, ethanol, metals, and petroleum coke; and owns tankers. The CO2 segment produces, transports, and markets CO2 to recovery and production crude oil from mature oil fields; owns interests in/or operates oil fields and gasoline processing plants; and operates a crude oil pipeline system in West Texas, as well as owns and operates RNG and LNG facilities. It owns and operates approximately 82,000 miles of pipelines and 139 terminals. The company was formerly known as Kinder Morgan Holdco LLC and changed its name to Kinder Morgan, Inc. in February 2011. Kinder Morgan, Inc. was incorporated in 2006 and is headquartered in Houston, Texas.

Kinder Morgan Bull Case

Here are some ways that investors could benefit from investing in Kinder Morgan, Inc.:

  • The current stock price of Kinder Morgan, Inc. is $26.61, which is relatively stable and shows potential for growth given recent analyst upgrades.
  • Analysts have recently raised their target prices for Kinder Morgan, Inc., with estimates ranging from $26.00 to $38.00, indicating strong market confidence in the company's future performance.
  • Kinder Morgan, Inc. has a solid market capitalization of $59.11 billion, which reflects its significant presence in the pipeline industry and provides a level of stability for investors.
  • The company has a consistent dividend policy, with a recent announcement of a quarterly dividend, which can provide a steady income stream for investors.
  • Insider ownership is at 12.64%, suggesting that company executives have a vested interest in the company's success, which can be a positive indicator for investors.

Kinder Morgan Bear Case

Investors should be bearish about investing in Kinder Morgan, Inc. for these reasons:

  • The company reported earnings per share (EPS) of $0.32, which was below analysts' expectations of $0.33, indicating potential challenges in meeting market forecasts.
  • Kinder Morgan, Inc. has a relatively high price-to-earnings (P/E) ratio of 22.74, which may suggest that the stock is overvalued compared to its earnings, making it a riskier investment.
  • The company has a quick ratio of 0.35 and a current ratio of 0.49, indicating potential liquidity issues, as these ratios suggest that the company may struggle to meet short-term obligations.
  • Insider selling activity has been noted, with 54,000 shares sold recently, which could signal a lack of confidence among executives regarding the company's short-term prospects.
  • The stock has a beta of 0.94, indicating that it is less volatile than the market, which may limit potential gains during bullish market conditions.

MarketBeat: Week in Review 10/17-10/21

Written By Chris Markoch on 10/22/2022

In mid-day trading, stocks are staging a rally to end the week. The catalyst could be earnings reports that continue to come in mostly better than expected. The enthusiasm may also be tied to the rising price of oil which is lifting oil-related stocks. And just this morning came whispers that the Fed may be ready to slow down the pace of future rate hikes. But the rally may be short lived. Next week brings key economic reports including data on manufacturing, consumer confidence, a first reading on third quarter GDP, and the last reading on the personal consumption expenditures (PCE) price index before the Federal Reserve’s next meeting.  A negative surprise for any of these may be enough to send markets tumbling. These are still turbulent times. And you can count on MarketBeat to keep you in touch with the stocks and stories that are affecting your money. Here are some of the most popular articles from this week.

Articles by Jea Yu

As part of our explainer series, Jea Yu helps investors understand the impact of a strong dollar on your investments. Specifically, Yu explains why a strong dollar benefits importers more than exporters. He also gives readers three stocks that will benefit from a strong dollar. Semiconductor stocks haven’t been benefiting from much of anything recently. That’s been particularly true for Nvidia (NASDAQ:NVDA). The company was one of the shining stars of 2021. But multiple headwinds have pushed the stock down over 60% in 2022. However, Yu explains to investors why analysts may be setting the bar too low which may provide a compelling entry point for risk-tolerant investors. More cautious investors may want to take a look at Camping World (NYSE:CWH). Yu explains why the company may miss on its upcoming earnings, but unless the company greatly lowers its guidance, that dip should give investors an entry point.

Articles by Thomas Hughes

Post earnings, Thomas Hughes believes Intel (NASDAQ:INTC) stock may be near a bottom. And while that doesn’t mean that investors should be loading up, there may be an opportunity for patient investors looking for deep value stocks. For more risk-averse investors, Hughes points them to Lockheed Martin (NYSE:LMT) which is a defense stock that is also exhibiting some defensive qualities that should hold up well in the current market. And although JPMorgan Chase (NYSE:JPM) CEO Jamie Dimon continues to warn of a coming hurricane for the U.S. economy, Hughes writes that JPM stock is still behaving as a port for investors to flee to safety. The best-in-class company delivered a stellar earnings report that may prove to be a catalyst for the broader market.

Articles by Sam Quirke

Sam Quirke was looking at two stocks that look set for a recovery. Twilio (NYSE:TWLO) may present an opportunity for risk-tolerant investors looking to find value in the tech sector. The company was a pandemic winner, but has dropped sharply from those highs. However, Quirke points investors to fundamental and technical reasons that support taking a small position in TWLO stock. Long investors may want to take a closer look at Target (NYSE:TGT). The retailer was one of the first companies to slash their guidance and TGT stock was walloped for it. But the stock has rallied 15% from the lows of the spring, and Quirke explains why the stock may be ready to give investors a nice year-end rally.

Articles by Chris Markoch

The electric vehicle (EV) market continues to intrigue investors. But for much of 2022, this sector has lost a lot of the juice it had in 2021. Investors now have a show-me mindset. However, as Chris Markoch writes, Fisker (NYSE:FSR) may be ready to do just that. If the company hits is November 2022 production deadline, it could be time for speculative investors to jump back in. One stock that investors can always look at is Johnson & Johnson (NYSE:JNJ). Markoch doesn’t disagree, but points out that the company will be losing approximately 16% of revenue when it spins off its consumer division. Markoch was also looking at the proposed merger between Kroger (NYSE:KR) and Albertson’s (NYSE:ACI). If the deal is approved by regulators, it could be an opportunity for investors as the combined company will have more pricing power to compete with Walmart (NYSE:WMT).

Articles by Parth Pala

Tesla (NASDAQ:TSLA) is a closely-watched stock during earnings season. And this time was no different. Parth Pala wrote about why TSLA shares dropped sharply after a mixed earnings report. However, Pala also makes the case the bears may not want to get too comfortable because the company still has several bullish catalysts. And while many investors are eyeing oil stocks, you may want to look at natural gas stocks. That’s the case that Pala makes for buying shares of Kinder Morgan (NYSE:KMI). The company accounts for nearly 40% of the nation’s natural gas production and should benefit from several geopolitical tailwinds. Pala was also reviewing the earnings report of Freeport–McMoRan (NYSE:FCX). The stock continues to climb even as copper prices remain under pressure. Bu with a cheap valuation, Pala notes that the stock may be inexpensive enough for investors to hang onto while waiting for a bounce in commodity prices.

Articles by Kate Stalter            

Spending on travel and entertainment continues to remain steady. And as Kate Stalter noted, that strength was reflected in the earnings report for American Express (NYSE:AXP). However, even with the company posting its fifth straight quarter in which it beat on earnings and revenue, there are technical indicators that suggest investors may need to wait on AMEX stock. Keeping her eyes on the charts, Stalter found a bullish technical indicator for Cardinal Health (NYSE:CAH). The company reports earnings in early November, so the short-term price movement of the stock may come down to what the report shows. It’s one for the watchlist in any case. Another stock that investors may want to watch closely is Merck & Co. (NYSE:MRK). The stock is nearing a new all-time high after two bullish catalysts, and if the company reports positive earnings next week, the stock may be ready to move even higher.

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