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Kinder Morgan surpbades
Kinder Morgan (KMI) hit a new high of 52 weeks on June 6th. The stock has risen by ~ 36% in 2019. The stock has outperformed the energy sector and the broader market. Energy Select sector (SEX) SPDR ETFs increased by around 6%, while the S & P 500 index rose by around 13% in 2019. Although Kinder Morgan's rise looks impressive, negotiates at a lower price in 2015.
Kinder Morgan appears to have significantly exceeded its 50-day moving average. It is possible that Kinder Morgan remains strong in the short term. However, the company's 14-day RSI (Relative Strength Index) is ~ 68. RSI values above 70 indicate the overbought area. The level may indicate an imminent turnaround in the direction of the stock.
Market multiple valuation of Kinder Morgan
Kinder Morgan is trading at a term PE ratio of about 20x, which is less than its average PE ratio at three years of ~ 24x. It seems that there is a possibility of multiple expansion to bring the company close to its average level over three years. Kinder Morgan's average five-year PE ratio is still higher, at about 27 times. Compared to its counterparts at Kinder Morgan, the futures company's PE ratio is close to ONEOK (OKE) and less than about 28 times that of Williams Companies (WMB).
Long-term growth
In the long term, strong growth in natural gas demand is expected to support Kinder Morgan's earnings growth. Combined with a healthy backlog and better debt, the company looks ready for long-term growth.
Of the 22 badysts polled by Reuters who followed Kinder Morgan, 16 recommended a "buy." The stock offers upside potential of about 4% based on an average target price of $ 21.6.
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