Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a momo momentum candidate. In addition to specific proprietary factors, Trade-Ideas identified Kinder Morgan as such a stock due to the following factors:
- KMI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $1.1 billion.
- KMI has a PE ratio of 31.7.
- KMI is currently in the upper 30% of its 1-year range.
- KMI is in the upper 25% of its 20-day range.
- KMI is in the upper 35% of its 5-day range.
- KMI is currently trading above yesterday's high.
- KMI has experienced a gap between today's open and yesterday's close of 1%.
'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.
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More details on KMI:
Kinder Morgan, Inc. operates as a midstream and energy company in North America. It operates through Natural Gas Pipelines, CO2 KMP, Products Pipelines KMP, Terminals KMP, Kinder Morgan Canada KMP, and Other segments. The stock currently has a dividend yield of 4.6%. KMI has a PE ratio of 31.7. Currently there are 9 analysts that rate Kinder Morgan a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Kinder Morgan has been 24.8 million shares per day over the past 30 days. Kinder Morgan has a market cap of $80.9 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.65 and a short float of 30.5% with 7.51 days to cover. Shares are up 10.8% year-to-date as of the close of trading on Wednesday.
rates Kinder Morgan as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, expanding profit margins, good cash flow from operations and compelling growth in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 6.3%. Since the same quarter one year prior, revenues rose by 14.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry average. The net income increased by 15.0% when compared to the same quarter one year prior, going from $286.00 million to $329.00 million.
- 43.16% is the gross profit margin for KINDER MORGAN INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 7.66% is above that of the industry average.
- Net operating cash flow has increased to $1,289.00 million or 21.60% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -1.58%.
- You can view the full Kinder Morgan Ratings Report.