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 was unchanged today. By the end of trading, Kinder Morgan fell $0.66 (-1.7%) to $38.88 on light volume. Throughout the day, 2,500,991 shares of Kinder Morgan exchanged hands as compared to its average daily volume of 3,374,500 shares. The stock ranged in price between $38.81-$39.73 after having opened the day at $39.69 as compared to the previous trading day's close of $39.54. Other companies within the Energy industry that declined today were: BMB Munai ( BMBM), down 18.8%, Sinopec Shanghai Petrochemical Company Limi ( SHI), down 12.3%, FieldPoint Petroleum Corporation ( FPP), down 6.2% and Harvest Natural Resources ( HNR), down 6.0%.
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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 $40.3 billion and is part of the basic materials sector. The company has a P/E ratio of 63.8, above the S&P 500 P/E ratio of 17.7. Shares are up 10.2% year to date as of the close of trading on Friday. 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 buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, PostRock Energy ( PSTR), down 11.8%, Global Geophysical Services ( GGS), down 10.8%, Triangle Petroleum ( TPLM), down 10.2% and Blackhawk Network Holdings ( HAWK), down 6.3% , were all gainers within the energy industry with Royal Dutch Shell ( RDS.A) 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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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