Kinder Morgan Inc. (KMI): Today's Featured Energy 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 Energy industry lower today making it today's featured Energy laggard. The industry as a whole closed the day up 0.4%. By the end of trading, Kinder Morgan fell $0.49 (-1.2%) to $39.11 on average volume. Throughout the day, 4,226,733 shares of Kinder Morgan exchanged hands as compared to its average daily volume of 4,367,700 shares. The stock ranged in price between $39.02-$39.87 after having opened the day at $39.59 as compared to the previous trading day's close of $39.60. Other companies within the Energy industry that declined today were: Whiting USA Trust I ( WHX), down 23.0%, Carbo Ceramics ( CRR), down 17.4%, Patterson-UTI Energy ( PTEN), down 7.2% and NuStar GP Holdings ( NSH), down 6.9%.
  • EXCLUSIVE OFFER: Jim Cramer's Protege, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Kinder Morgan, Inc. owns and operates energy transportation and storage assets in the United States and Canada. The company operates in six segments: Natural Gas Pipelines, Products Pipelines KMP, CO2 KMP, Terminals KMP, Kinder Morgan Canada KMP, and Other. Kinder Morgan has a market cap of $40.9 billion and is part of the basic materials sector. The company has a P/E ratio of 64.8, above the S&P 500 P/E ratio of 17.7. Shares are up 13.2% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Kinder Morgan as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and compelling growth in net income. 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, Global Geophysical Services ( GGS), down 74.8%, GeoPetro Resources Company ( GPR), down 18.6%, Samson Oil & Gas ( SSN), down 14.4% and HyperDynamics Corporation ( HDY), down 12.0% , were all gainers within the energy industry with Royal Dutch Shell ( RDS.B) being today's featured energy industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the energy industry could consider Energy Select Sector SPDR ( XLE) while those bearish on the energy industry could consider Proshares Short Oil & Gas ( DDG).

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.
null

If you liked this article you might like

These Stocks Pay You to Own Them

Florida Drivers Will Suffer Higher Gas Prices Long After Hurricane Irma Is Gone

Hurricane Irma Has Closed Miami Gas Stations: Gas Prices Have Peaked

Snap, Kinder Morgan, Iconix Brands: 'Mad Money' Lightning Round

Stay Focused on the Green Lights: Cramer's 'Mad Money' Recap (Wed 8/30/17)