Kinder Morgan Inc. (KMI): Today's Featured Basic Materials Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Kinder Morgan ( KMI) pushed the Basic Materials sector lower today making it today's featured Basic Materials laggard. The sector as a whole closed the day up 0.3%. By the end of trading, Kinder Morgan fell 55 cents (-1.5%) to $36.40 on average volume. Throughout the day, 6.5 million shares of Kinder Morgan exchanged hands as compared to its average daily volume of 4.8 million shares. The stock ranged in price between $36.39-$36.88 after having opened the day at $36.84 as compared to the previous trading day's close of $36.95. Other companies within the Basic Materials sector that declined today were: Senomyx ( SNMX), down 21.1%, USEC ( USU), down 17.1%, Callon Petroleum ( CPE), down 12.4%, and VAALCO Energy ( EGY), down 12%.
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Kinder Morgan, Inc. owns and operates energy transportation and storage assets in the United States and Canada. The company operates in six segments: Products Pipelines-KMP, Natural Gas Pipelines KMP, CO2 KMP, Terminals KMP, Kinder Morgan Canada KMP, and NGPL PipeCo LLC. Kinder Morgan has a market cap of $38.25 billion and is part of the energy industry. The company has a P/E ratio of 65.9, above the S&P 500 P/E ratio of 17.7. Shares are up 4.6% year to date as of the close of trading on Thursday. Currently there are six analysts that rate Kinder Morgan a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Kinder Morgan as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and relatively poor performance when compared with the S&P 500 during the past year.

On the positive front, Alderon Iron Ore ( AXX), up 18.7%, Comstock Resources ( CRK), up 12.8%, Cal Dive International ( DVR), up 10.7%, and Adams Resources & Energy ( AE), up 10.5%, were all gainers within the basic materials sector with National Oilwell Varco ( NOV) being today's featured basic materials sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the basic materials sector could consider Materials Select Sector SPDR ( XLB) while those bearish on the basic materials sector could consider ProShares Short Basic Materials Fd ( SBM).

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