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 0.9%. By the end of trading, Kinder Morgan fell $0.58 (-1.5%) to $39.00 on average volume. Throughout the day, 3,922,011 shares of Kinder Morgan exchanged hands as compared to its average daily volume of 3,285,400 shares. The stock ranged in price between $38.60-$39.75 after having opened the day at $39.54 as compared to the previous trading day's close of $39.58. Other companies within the Basic Materials sector that declined today were: Tasman Metals ( TAS), down 8.8%, Houston American Energy Corporation ( HUSA), down 8.3%, CKX Lands ( CKX), down 8.0% and New Concept Energy ( GBR), down 6.7%.
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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: Natural Gas Pipelines, Products Pipelines KMP, CO2 KMP, Terminals KMP, Kinder Morgan Canada KMP, and Other. Kinder Morgan has a market cap of $41.9 billion and is part of the energy industry. The company has a P/E ratio of 66.3, above the S&P 500 P/E ratio of 17.7. Shares are up 14.4% year to date as of the close of trading on Wednesday. Currently there are 6 analysts that rate Kinder Morgan a buy, no analysts rate it a sell, and 4 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, compelling growth in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and disappointing return on equity.

On the positive front, Great Basin Gold ( GBG), down 25.0%, Lake Shore Gold ( LSG), down 18.3%, Syntroleum Corporation ( SYNM), down 17.7% and Almaden Minerals ( AAU), down 15.4% , were all gainers within the basic materials sector with Silver Wheaton Corporation ( SLW) 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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